Mediclaim vs Health Insurance - What To Choose?

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Mediclaim vs Health Insurance - What To Choose?

28 February, 2022



Medical emergencies are hardly anticipated, but they do occur without warning. Health insurance and mediclaim are frequently misunderstood, whether it's for minor discomfort or a substantial surgery. One of the most common misunderstandings is that mediclaim is the same as health insurance. The two are radically different when it comes to health insurance and mediclaim.

If you're uncertain between the two, keep reading to learn how to decide which is best for you.

What is Health Insurance?

In a simple way, the cost of medical and surgical expenses incurred by the insured is covered by health insurance. The insured can either pay for such charges upfront and have the insurance company refund them later, or the insurance company can pay the bill straight to the network hospital. 

Some examples of the coverages are,

  1. Hospitalization
  2. Surgery
  3. Critical illnesses
  4. Accidents
  5. Pre and Post-treatment consultations and so on.

Most of the time, the coverage is more extensive than hospitalization charges, making it more expensive than a mediclaim policy. Yet, many institutions offer insurance with affordable premium rates. 

Benefits of Health Insurance 

While you know a little about what it is, know some benefits of availing of Health Insurance. 

  • Portable: this allows the policyholders to transfer their existing health insurance coverage to a new provider. It protects customers from being taken advantage of by insurance providers, allowing them more flexibility and better options if they are dissatisfied with their current health insurance policies.
  • Cashless: Several insurance companies provide a cashless claim option. You will not be required to make any out-of-pocket payments under this agreement. Your insurer and the hospital will work out the costs of your stay in the hospital. Patrons must, however, be admitted to one of the insurer's associated hospitals and use the cashless facility by completing a pre-authorization form and showing their health insurance card.
  • Comprehensive: The primary goal of medical insurance is to ensure that you obtain the best medical treatment possible without putting your finances at risk. Health insurance plans provide coverage for unexpected medical expenses. It includes, among other things, hospitalization costs, daycare procedures, domiciliary fees, and ambulance costs. 

What is Mediclaim?

Mediclaim can be termed as a type of health insurance where the liabilities are restricted in comparison to health insurance. It's a cost-effective option to deal with any health-related issue. However, mediclaim insurance coverage is restricted to hospitalization, and the insured is responsible for all additional medical expenses.

Benefits of Mediclaim

Here’s a little about how Mediclaim is beneficial to you:

  • Medical emergencies: The coverage will help you avoid financial stress in the case of a medical emergency. 
  • Cost-effective: Mediclaim insurance is a cost-effective approach to deal with rising healthcare costs. 
  • Cashless hospitalization: This too has a cashless hospitalization option, which means the policyholder does not have to pay any money out of pocket in the event of an emergency. The medical bills are paid directly by the insurance provider to the network hospital. 
  • Income tax savings: Purchasing a mediclaim policy allows the policyholder to save money on their taxes. The tax benefit is available under section 80D. 
  • Quick turnaround time: When you are hospitalized, you can acquire urgent medical expenditure coverage.

Here are some differences between the two

Mediclaim

Health Insurance

It only covers hospitalization expenditures, thus you can only file a claim if you're admitted to the hospital.

This provides comprehensive coverage that includes annual health checkups, daily hospital fees, OPD expenses, and any alternative treatments that may be required in addition to recognized charges.

It does not offer any additional coverage.

There are a variety of add-on coverage available, like Critical Illness Cover, Maternity Benefit, and Infertility Cover, etc.

The hospitalization cover is limited and does not exceed a set sum.

The coverage is vast and is determined by factors such as age, location, and the number of people in a single plan.

There is least scope of flexibility for add-ons or changes in the existing plans. 

These can be available in numerous flexible plans and can be customized depending on your specific needs. 

Premiums for a Mediclaim are lower than 5 lacs per annum. 

The premiums can be as high as 60 lacs per annum. 

 

To conclude

Mediclaim insurance and health insurance are two separate types of health-related risk management solutions. You'll be able to choose the one that best suits you now that you understand the differences between a mediclaim plan and a health insurance plan. However, before purchasing a health insurance plan, consider your insurance expectations and compare several insurance plans that meet your needs.


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