Health Insurance vs Mediclaim Insurance

 A lot of people are unaware of the different health insurance plans available in India and what exactly they offer. Due to the lack of knowledge, people end up making various health insurance-related mistakes. What we fail to understand is the fundamental difference between a health insurance plan and a Mediclaim insurance.

It is high time we put an end to this confusion. In this article, we have briefly explained the difference between health insurance and Mediclaim insurance. Here’s everything that you need to know.

What Is Mediclaim Insurance?

A Mediclaim policy is nothing but a type of health insurance plan that offers financial protection to you in case of a medical emergency or health-related expenses. It is a simple way to tackle any unforeseen medical expenses.

However, it is noteworthy that the coverage provided is limited to hospitalisation and other expenses incurred by the insurer themselves.

How Does A Mediclaim Insurance Plan Work In India?

Some of the salient features of Mediclaim insurance plan are as follows –

  • Coverage 

A health insurance policy will provide you with financial coverage against hospitalisation expenses, treatment expenses incurred due to accidents and other diseases.

  • Sum Insured

It usually comes with a pre-determined sum insured.

  • Premium Affecting Factors 

The insurance premium rates are calculated based on the sum insured, your age at the time of seeking insurance, gender, geographical location, and policy term.

  • Claim Settlement 

The claim will be settled in the form of reimbursement as well as cashless health insurance treatments

  • Plan Basis 

You can purchase Mediclaim insurance individually or as a group (for family members). When you buy family health insurance, it covers self, spouse, dependent children, and parents.

  • Tax Benefits 

The Mediclaim insurance plans have various tax benefits under Section 80D of the Income Tax Act, 1961.

What Is Health Insurance?

health insurance policy covers medical and surgical expenses incurred by an individual. You will either have to pay for the expenses incurred which later your insurance company will reimburse, or the insurance company settles the bills directly with the hospital.

The coverage and benefits provided are dependent on the terms and conditions of your policy. A health insurance plan is generally extensive, and the plans are relatively expensive than Mediclaim policy.

How Does A Health Insurance Plan Works In India?

Some of the salient features of health insurance plans are as follows 

  • Coverage 

The basic health insurance plan provides high coverage for a wide-range of illnesses. The plan is relatively sufficient to cover for an individual as well their family members

  • Renewal Discounts 

A basic health insurance plan comes with renewal benefits that can be availed after the end of a claim-free year. In insurance terms, it is known as the No Claim.

  • Co-Payment 

There are a few health insurance plans that come with co-payment options. With this option, a portion of the medical expense incurred is paid by you, and the insurance company covers the remaining.

  • Tax Benefits 

A health insurance policy offers tax benefits under Section 80D of the Income Tax Act, 1961.

Difference between Mediclaim Insurance and Health Insurance

The following table compares Mediclaim insurance and health insurance –

Criteria

Mediclaim Insurance

Health Insurance

Coverage

It covers the cost incurred by an individual during hospitalization. All the charges incured before and after hospitalization, is not considered under the cover.

It provides comprehensive coverage in case of hospitalisation, pre and post hospitalisation expenses, ambulance expenses. It also compensates in case of loss of income due to accidents.

Add-on Coverage

Does not offer any add-on coverage

You can enhance your insurance with add-on benefits like critical illness coverage, personal accident coverage, accidental disability coverage, and maternity coverage.

Flexibility

No flexibility is offered

It offers flexibility. You can reduce the insurance premium amounts after a time, change the policy term, and can avail maximum insurance benefits

Health Insurance Calculator

Calculating health insurance premium includes complex algorithms, and the entire process can be time-consuming. Hence, to make the task easier, insurance companies offer health insurance calculator tool on their websites.

With this tool, you can gain understanding regarding the health insurance premiums that you need to pay every month. Moreover, doing so will help you plan your finances and understand your health insurance a bit more.

A Final Thought

Before you purchase a Mediclaim or health insurance policy, understand your expectations. Also, it is advisable to compare different health insurance policies online and choose one with affordable premiums. If you ask us, in the debacle of Mediclaim vs Health Insurance, there is no winner or loser. Both of them helps mitigate health-related risks and expenses.

Get access to the best medical insurance with us on Finserv Markets. The health insurance plan at Finserv Markets offer plenty of insurance solutions, extensive coverage, and swift claim settlement. So, whether you need health insurance for self or your family members, we at Finserv Markets have a broad range of health insurance plans at affordable premium rates.

Apply for Bajaj Health Insurance at Finserv MARKETS, today!

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