Hospital cash plans are supplements which you could opt for over and above your health insurance plans. They are designed to provide you with liquid cash in times of hospitalisation to avoid a situation of being cash strapped. The plan provides you with liquid cash on hospitalisation that could be used to meet non medical expenses arising in times of hospitalisation. Be it for travel or basic needs of the care giver or the patient.
Working of the plan
With a hospital cash plan, you could expect to get daily cash allowances that you could utilise for the indirect odd expenses associated with hospitalisation. At policy inception itself, a pre determined amount is fixed. This is paid out for every 24 hours that is spent in the hospital. This amount is fixed keeping in mind the nature of policy and individual profile such as age and occupation of the policy holder.
Criteria for payment
The plan pays out cash only if hospitalisation is in a registered hospital or, if the hospital has a minimum of 5 beds. The hospital should also have the capacity to offer 24 hour medical attention.
Is a hospital cash plan same as a regular health plan?
The answer is a BIG NO. A hospital cash plan is purely a supplement or an add on over and above your health insurance plan. Do not equate the two. A cash plan pays you a fixed amount, for each day spent in the hospital, whether it is for medical or non medical expenses. No bills are to be produced for the benefit. Except for a document confirming hospitalisation. On the other hand a regular health plan pays your actual medical bills, up to the sum assured of the policy. You submit all medical and hospital bills to get your benefit claimed.
Product Review: Hospital cash plan and its requirement
The question do you really need one? Here is why you may give a look at the product
- Reduce additional financial burden of transportation or food, for every day of hospitalisation
- Not a very expensive option and you sure do have a choice of clubbing it with your regular health plan.
- Additional benefits for critical ailments or in case of Intensive Care Unit (ICU): Insurers offer higher pay-outs in case of ICU admission, for around 7 days.
- Get a tax benefit on the premium paid under Section 80D.
What you get paid.
Cash plans generally offer a payout of between Rs. 1000 to Rs. 3000 per hospitalised day. This amount could increase in case of admission in Intensive care Units.
You need to file a claim once hospitalisation occurs for the benefit. Submit a copy of the discharge summary and medical reports and the claim form duly filled, confirming your hospitalisation. The fixed daily allowance amount is calculated as per the plan you have chosen and is payable for the number of days hospitalised.
Bear in mind:
You wouldn’t get paid if:
- Hospitalisation within the first month of policy commencement.
- Hospitalisation due to Pre-existing disease
- Dental surgery of any kind unless due to accident and requiring hospitalization.
- Hospitalisation due to Natural perils such as avalanche or earthquake
- Accidents resulting from drunken driving.
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