Deciphering the Distinction: Health Insurance Vs. Mediclaim Insurance

Securing health has become a top priority for everyone. Insurance policies are undoubtedly among the most effective ways to do so! Expenses are one of the many things one can avoid with the right plan. Policyholders with insurance claims do not have to worry about seeking immediate treatment.

However, assuming health and best Mediclaim Insurance In India are synonyms is among many common mistakes when buying insurance. The truth is that they are not the same. Investing in a mediclaim is different than purchasing a healthcare policy. So, what marks the distinction?

What is Healthcare Insurance?

Simply put, health insurance is an agreement between the insurance company and a policyholder to compensate for medical expenses. One can opt for an individual plan for personal needs, family floater policies to cover family members or senior citizen insurance for aged parents.

It is crucial to note that an insurer only covers expenses mentioned in the policy document. Hence, one must assess available options and check the terms and conditions to purchase and make full use of the policy.

What are the Benefits of Healthcare Insurance?

Insurance policies are designed specifically to cater to diverse requirements. Consequently, about 514 million people in India are covered under health insurance. Some of its positive features include:

1. Medical Coverage

Medical plans offer comprehensive coverage and financial protection to manage steep treatment costs. Such policies cover hospitalisation expenses, daycare procedure charges, complimentary checkups, and more.

2. Lifetime Renewability

Policyholders can renew their insurance policy without restriction on age. It proves handy when one has bought a family floater and the oldest member crosses the age limit.

3. Lucrative Deals

Purchasing a plan early enables one to receive better perks than aged or senior citizens. Policyholders can enjoy higher coverage at lower premiums and longer tenure.

4. Tax Savings

Policyholders can benefit from the income tax advantages a healthcare plan provides. Section 80D, under the Income Tax Act 1961, allows one to claim tax deductions.

What is Mediclaim?

A mediclaim refers to an insurance policy where insurance companies reimburse medical expenses to policyholders during the policy term. One can seek cashless treatment facilities at network hospitals or submit medical bills to receive reimbursement.

Mediclaim is a budget-friendly option to deal with unexpected health crises and works on an indemnity basis. However, it offers limited coverage compared to healthcare plans and does not cover undefined hospital expenses.

What are the Benefits of Mediclaim?

Mediclaim plans are an affordable way to avail of advanced treatment with the increasing healthcare costs. It promises various advantages to policyholders, for instance,

1. Income Tax Benefit

Investing in the best mediclaim policy can reduce tax liability on the mediclaim investment and yearly paid premium under Section 80D of the Income Tax Act, 1961.

2. Easy Claim Settlement

Policyholders can claim the sum insured in mediclaim as cashless treatment and reimbursement. The former lets one seek treatment in-network hospitals, and the latter involves reimbursing the incurred bills.

3. Cashless Facility

A mediclaim facilitates cashless hospitalisation where policyholders do not have to incur expenses during medical emergencies. Insurance companies directly settle the bills with the network hospitals.

Difference Between Healthcare Insurance and Mediclaim

Health and mediclaim insurance are two instruments helping individuals mitigate medical risks. Both policies are different and offer varying benefits to policyholders. Given below are the notable distinctions.

S. No.	Aspect	Healthcare Insurance	Mediclaim
	Coverage	Healthcare insurance provides comprehensive medical coverage and compensation in case of income loss due to an accident.	A mediclaim policy covers hospitalisation, accident-related treatment, and pre-existing diseases up to a specified limit.
	Add-on Covers	Additional personal accident, maternity, and critical illness covers may be available.	No add-on covers are present in mediclaim insurance.
	Sum Insured	The insured sum for healthcare policies can be ₹50,000 to ₹6 crore annually.	The maximum sum insured for mediclaim is ₹5 lakhs.
	Claims	A policyholder can file claims until the sum insured is exhausted.	Policyholders can file multiple claims until they exhaust the entire amount insured.
	Flexibility	Healthcare policyholders have the flexibility to reduce or enhance the coverage.   For instance, one can change the policy duration to decrease the premium amount.	Mediclaim plans do not offer flexibility regarding coverage.
	Hospitalisation	Hospitalisation is not essential to avail of healthcare insurance benefits.	A policyholder must be hospitalised to receive mediclaim benefits.

Conclusion

There is no best health insurance in India or mediclaim policy suitable for all. Knowing the thin difference between both plans can allow one to make an informed insurance decision. Hence, analysing insurance expectations and comparing multiple policies is crucial to choosing the suitable option.

Niva Bupa, the best health insurance company presents various healthcare and mediclaim policies to ensure the utmost care during medical emergencies. One can explore individual plans with add-ons or cover the entire family to have peace of mind at all times.