Don’t get confused between mediclaim and health insurance plans

Leave a comment

September 13, 2017 by GIBL Insurance

Health insurance plans and mediclaim policies are far from being the same. Yet, many people in India are under the wrong impression that both are same. However, there are many differences between health insurance plans and mediclaim policies. It is far more advantageous to go for a health insurance online plan than a mediclaim plan. Let’s take a look at the fundamental differences between health insurance policies and mediclaim plans in India.

Since, both types of medical schemes are designed to cover medical expenses on emergency and planned basis, consumers tend to get confused between these two types of medical covers. To get rid of this confusion , you first have to know what is a mediclaim plan and how it differs from an online health insurance policy in India.

What is a mediclaim plan and how it differs from a health insurance policy?

A mediclaim plan covers hospitalization expenses including treatment and care up to the chosen Sum Insured amount. The premium of the mediclaim plan depends on the coverage amount of the policy. Usually, premium of mediclaim policy is paid annually on renewal of the policy.

Even though, health insurance plans also work in the same way, there are many differences between a health insurance and a mediclaim plan. Here are some of the main differences between mediclaim and health insurance policies.

• Health insurance online plans comes with lot wider coverage than their mediclaim counterparts.
• Online health insurance plans provide value-added services like loss of income benefits ambulance benefits, however, mediclaim policies take care of treatment expenses only.
• Many health insurance plans come with an optional coverage for critical illnesses. Treatment of a specific list of life-threatening diseases are included in the ambit of most health insurance plans’ coverage. But, no mediclaim plan in India covers critical illnesses as the coverage limit is not high enough to cover massive expenses of treating diseases like cancer.
• The maximum coverage limit is lot lower in case of a medicalim plan in India. There are hardly any mediclaim plan over Rs. 5 Lakhs coverage. In case of a health insurance, you can choose from wide range of coverage from Rs. 50, 000 to Rs. 50 Lakhs depending upon your budget and requirement
• Mediclaim plans and health insurance online plans also differ in terms of tenure. While mediclaim plans are usually issued for one year, long-term health insurance policies are now available in India. This is beneficial for policyholders as the health insurance premium remains the same for  for longer period of time.

There are some similarities between mediclaim policy and health insurance plans as well. Like both types of medical covers provide cashless facility if the treatment is availed in any hospital in the network of the provider.

Some people buy mediclaim plans mistakenly assuming them as health insurance policies. This is not a bad thing actually, as you can keep minor medical expenses covered by the mediclaim plan and buy health insurance online plan separately to take care of major hospitalization expenses

At the same time, if you have mistakenly purchased a mediclaim policy, thinking you have purchased health insurance, it is not a bad idea to buy a separate health insurance policy. The advantage of this would be is that you can utilize your mediclaim policy for any kind of minor hospitalization, which will give you no-claim bonus on your main health insurance plan.