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Types of Health Insurance Plans in India

IndianMoney.com Research Team | Updated On Monday, June 24,2019, 02:52 PM

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Types of Health Insurance Plans in India

 

 

The penetration of health insurance plans in India is very low. With the rising cost of medical treatment and health care, buying a health insurance policy is an absolute necessity and must be availed to protect against medical emergency or a costly hospitalization.

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Types of Health Insurance Plans in India

Discussed below are different types of health insurance policies available in India:

Different Types of Health Insurance Plans in India:

In India, health insurance policies can be categorized into two types. They are:

  • Indemnity Plan: An indemnity plan reimburses cost of medical expenses incurred on hospitalization. Indemnity plan reimburses for money spent on hospitalization. The insured must submit hospital bills along with details of expenses incurred during the stay at hospital.
  • Defined Benefit Plan: A defined benefit plan refers to a health insurance plan where a fixed amount of coverage is offered for pre-determined illness or conditions that has been insured. The main benefit of a defined benefit plan is that it offers critical illness cover, personal accident cover, hospitalization cash benefit and so on, which are generally not covered by a regular health insurance policy.

See Also: Health Insurance Benefits

Indemnity Insurance Plan:

  • Medical Insurance:  Medical insurance offers cover to the insured and compensates for hospitalization expenses. This type of health insurance covers various expenses like nursing charges, doctor’s fees, cost of surgery and medicines.
  • Individual Insurance: The individual health insurance policy covers a single individual and compensates for hospitalization. The premium of the health insurance policy is determined based on factors like sum assured, age, medical history and place of residence.  The individual health insurance plan covers a pre-defined set of illnesses and only the policy holder can claim the sum assured.
  • Family Floater: A family floater health insurance is a plan which covers the entire family for hospitalization expenses. It is a comprehensive health insurance plan where the sum assured can be claimed by the insured members. The plan usually covers self, spouse and 2 dependent children. Parents of the policyholder can be included by paying an additional premium.
  • Senior Citizen Coverage:  There are only a few insurers which provide senior citizen health insurance. If you are above 60 years of age, avail senior citizen health insurance. These plans mainly cover illnesses arising out of old age.
  • Unit-linked health plan: The unit-linked health plan is a new entrant that offers insurance along with an investment component. Under this plan, a part of the insurance premium is invested in the stock markets and the returns depend on the market conditions.

See Also: Family Health Insurance Plan

Defined Benefit Plan:

  • Critical Illness Plan: Critical illness plans are benefit-based plans where the insured receives a lump sum on diagnosis of pre-defined critical illness. Critical illness plans are beneficial if you have a family history of critical illness. Critical illnesses can be very costly and can destroy finances. 
  • Hospitalization Cash Benefit: This is a type of defined benefit plan which pays a fixed sum for each day of hospitalization. Under this policy, the insured receives a fixed sum on a daily basis apart from the hospitalization expenses. For example, if the defined daily limit of the policy is Rs 3,000, he/she receives Rs 3,000 each day, irrespective of the actual cost, which may be below or above the daily limit.
  • Personal Accident Plan: This policy provides complete financial protection to the insured in case of death or injury resulting from an accident. In case of accidental death of the policyholder, the dependents/nominees receive 100% of the sum assured from the insurer. In case of unemployment due to permanent or partial disability arising from an accident, the insured receives a pre-specified amount.

See Also: Things To Consider While Availing Health Insurance Plans

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