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When seeking medical treatments, cutting corners is the last thing anyone wants to do. Whether it’s a planned treatment or a sudden emergency, you always want the best possible care for yourself and your family members. Medical emergencies can strikeunexpectedly, but having a reliable health insurance policy by your side acts as the strongest shield, offering financial support whenever you need.
One of the most widely chosen types of health insurance plans is indemnity insurance, also known as medical indemnity insurance or a regular health insurance plan. Let us understand more about what indemnity insurance is, how it works and also the principle of indemnity.
What is Indemnity Insurance?
An Indemnity Health Insurance Plan protects the policyholder from unexpected healthcare expenses. Hospitalisation costs for the insured individual are covered by this plan. However, only expenses up to the Sum Insured limits will be covered by the plan. Care Health Insurance provides a wide range of indemnity health insurance plans. So, in case you are hospitalised, your health insurer will cover the costs of the treatment, typically up to the sum insured of your policy.
Indemnity Health Insurance Offers Extensive Coverage
The subrogation principle applies to all indemnity contracts. Therefore, these plans will cover the medical expenses up to the sum insured limit. While the coverage of each plan differs, you can generally get coverage for:
- In-hospital expenses
- Room rent charges, ICU charges
- Investigations and diagnostic screenings
- Pre and Post-hospitalisation expenses
- Surgical expenses
- Ambulance charges.
- Domiciliary Coverage
- OPD cover
How does Indemnity in Insurance Work?
Deciding which health insurance plan is best for you can be greatly influenced by your understanding of indemnity health insurance. Here's how the indemnity insurance works:
Cashless Treatment
The cashless treatment facility is one of medical indemnity insurance best features. You can receive cashless care at a large network of hospitals with which insurers have partnerships. Except for any deductibles, the insurer pays the hospital directly when you choose to receive treatment at a network hospital. The pre-authorisation and payment procedures will be coordinated by the hospital and the insurance company.
Reimbursement
The process of receiving treatment at a non-network hospital entails reimbursement. Hospital bills must be paid in full upon discharge. After being released from the hospital, you have to give the insurer the required paperwork. This comprises medical reports, discharge summaries, hospital bills, and other necessary paperwork. After reviewing the submitted paperwork, the insurer pays back the covered costs up to the insured amount specified in the policy.
What are the Benefits of Indemnity Health Insurance?
As the name suggests, an indemnity health insurance policy works primarily on the principle of indemnity. The insurance company will either reimburse your medical expenses or pay for them directly to the hospital on your behalf. The right coverage can make you financially strong during unexpected emergencies.
Here are some benefits that you get when you invest in an indemnity policy in health insurance. Those are:
- Choice of Healthcare Providers - Indemnity medical insurance gives policyholders the flexibility to choose any hospital or physician, providing a wide range of cashless treatment options.
- Comprehensive Coverage - Pre- and post-hospitalisation medical costs, daycare services, and diagnostic testing are all covered by a comprehensive insurance of an indemnity plan.
- Unlimited Claims - Insurers can file an unlimited number of claims under an indemnity policy, up to the insured amount.
- Financial protection - The financial burden of unforeseen medical expenses is lessened with an indemnity health insurance plan, offering substantial financial protection. It helps protect your savings and ensures that hefty medical bills don't throw off your budget.
- Affordable Premiums - Indemnity health insurance plans are considered to be affordable. You can compare the premium with the expenses of hospitalisation. High medical inflation has raised healthcare prices. Your health plan will be much more affordable than the unexpected treatment costs.
Difference between an Indemnity Policy and a Fixed Benefit Policy
When you are looking for a health insurance plan, it is obvious that you want to go with the best option possible. Understanding the differences between the Indemnity health insurance and fixed benefit insurance policy will help you decide which one to pick. Let’s take a look:
| Details | Indemnity Policy | Fixed Benefit Policy |
|---|---|---|
| Purpose | The policy covers you for incurred expenses on hospitalisation | A pre-determined sum insured is paid to you on the diagnosis, typically a critical illness |
| Claim | You can either file a claim for reimbursement or go for cashless treatment if your insurer allows | You need to inform the insurer and provide the “Investigation Report" |
| Coverage | You can have wider coverage with indemnity health insurance | The lump-sum payout can act as a second income or help you cover the costs of the treatments required |
| Cost | Indemnity health plans come with affordable premiums. You may have the advantage of paying the premium as EMIs too | The premiums are typically higher compared to indemnity health insurance |
To Sum Up
When looking for health insurance for yourself and your family members, indemnity health insurance is generally a preferred choice. It offers you comprehensive coverage. At a network hospital, you can enjoy the facility of cashless coverage, while at a non-network hospital, you can go for reimbursement.
An increasing number of diseases, a sedentary lifestyle, and hectic routines make it all the more necessary for you to be invested in a health insurance plan that offers you maximum coverage. At Care Health Insurance, we offer you a long list of indemnity policies for you to choose from. Depending on your preference and requirements, you can choose the one that suits you and your budget the most.
>> Also Read: what are the types of health insurance?
Disclaimer: The above information is for reference purposes only. Kindly consult your general physician for verified medical advice. The health insurance benefits are subject to policy terms and conditions. Refer to your policy documents for more information.
