We know Health Insurance takes care of hospital expenses. But, does it cover ALL medical expenses? Probably not. Let us tell you all about Daily Hospital Cash Plans (DHC) and you will see why it may be a convenient addition to your Health Insurance policy.
What are Daily Hospital Cash Plans?
During a period of hospitalisation, you might find yourself faced with several miscellaneous expenses. Some of these may not be covered by the Health Insurance policy that you have. These could be expenses such as food as well as conveyance to and from the hospital.
However, this is where a Daily Hospital Cash Plan comes in.
Tell me more
A Daily Hospital Cash Plan may go by various names: Hospital Cash Insurance, Daily Hospital Cash, or just Hospital Cash. But it works in the same way, regardless of what name it goes by.
Is it similar to a Mediclaim policy?
No. Don’t confuse the two. We’ll tell you how a Daily Hospital Cash Plan is different from a Mediclaim plan.
- A Mediclaim policy will cover your hospital bills. But a Daily Hospital Cash Plan will reimburse you based on the number of days you were hospitalised.
- A Mediclaim policy takes into account the expenses incurred on tests, doctor’s consultation fees, room charges and so on. However, a Daily Hospital Cash Plan only counts the number of days spent in the hospital and pays you as per the terms of the policy that you have. This is not connected to the hospital expenses.
It is a good idea to have both a Mediclaim policy and a Daily Hospital Cash Plan. Don’t worry! You can make a claim for both plans.
Additional Reading: Mediclaim Vs Health Insurance
How much cover does a Daily Hospital Cash Plan offer?
A Daily Hospital Cash Plan does not offer a sum assured amount like a Mediclaim policy. When you opt for a Daily Hospital Cash Plan, you need to choose how much you want as a daily benefit. This could range between Rs. 500, Rs. 1,000, Rs. 1,500 and upwards.
What decides the payout in a Daily Hospital Cash Plan?
While the payout amount in a Daily Hospital Cash Plan is decided by the daily benefit limit you choose, the payout is also decided by the kind of hospitalisation.
For instance, in case you are admitted to the Intensive Care Unit, the payout you receive may double. In the event of a surgery, you could get almost 5 times or 20 times the daily limit. This certainly makes hospitalisation easier on your pocket.
No Claim Bonus
Let’s say you have both a Mediclaim policy and a Daily Cash plan. If you make no claims for a specific period (generally one year) you can get a No Claim Bonus on your Mediclaim policy.
If you use your Daily Hospital Cash Plan to cover a reasonably small hospital bill, you can avoid losing your No Claim Bonus on your Mediclaim policy.
Additional Reading: Top 5 Health Plans For 2016
What to remember when choosing a Daily Hospital Cash Plan
Several insurers may enforce different terms and conditions on the Daily Hospital Cash Plans they offer. Before you finalise your choice of a Daily Hospital Cash Plan, you must find out about all the limitations of the policy.
- Number of days
In a policy year, an insurer may limit the number of days spent in hospital at 30, 40 or 60 days. An ICU stay may be restricted to a period of 10 days.
- Minimum period of hospitalisation
Daily Hospital Cash Plans may also require a minimum period of hospitalisation before a claim can be filed. This period may range from 24 to 48 hours.
- Maximum benefits allowed
Many insurers will have a maximum limit for benefits that a policyholder can claim under a Daily Hospital Cash Plan in a single policy year. You must review this carefully when selecting your plan.
The most important factor to remember is that a Daily Hospital Cash Plan is not a replacement for a Mediclaim policy. A Daily Hospital Cash Plan is only a valuable addition to it.
Additional Reading: Complete Guide To Health Insurance In India
Choose your Health Insurance wisely.