How Does Health Insurance Work?

In modern times, having health insurance is vital. It offers protection from the price of medical care and other related expenses. Hospitalisation costs, pre- and post-hospitalisation costs, ambulance fees, room rent, doctor consultation fees, daycare treatment fees, evacuation fees, severe illness-related costs, etc., are a few of the frequent items covered by this insurance. *

Some still wonder how health insurance works, however, despite having invested in it. Here are some of the queries and their responses: 

Here is how Indian health insurance operates: 

• The insured’s process starts when he buys a health insurance policy. You can choose an insurance policy based on the coverage offered, the inclusions, the exclusions, and the premium. Your interaction with the insurance provider starts at that point. *

• Depending on your age and income, the insurance provider will decide how much you will pay for your health insurance premium. Also, a thorough medical examination will be performed to determine your overall health. It will establish an annual premium and approve the sum assured based on these considerations. Any claims that fall under the sum assured cap will be paid out based on additional criteria, like deductibles and co-payments. *

• You must determine whether the coverage is a cashless insurance policy in case of hospitalisation. If the insurance is cashless, you must speak with the network hospital’s Third Party Administrator (TPA). Your hospital cost will be directly reimbursed by the TPA. If the procedure requires payment in cash, you will be responsible for paying the bills before your insurance company reimburses you. *

• Some insurance plans offer “hospital cash,” which is a daily cap that you’ll receive based on how many days you spend in the hospital. This is intended to pay for potential daily costs incurred while in the hospital. *

• If the policy is not cashless, you must submit a claim to the TPA with the hospital bills, reports, doctor’s summary, and discharge report. These TPAs will gather your supporting documentation, check it, and guarantee that your claim application is comprehensive. They will submit the health insurance claim to the insurance provider after the application is complete. Thus, the insurance provider will handle the claim and pay the expenses. There can be a few exclusions, such as having to pay a percentage of the expenses yourself. The term for this is co-payment. There could be a small number of things that the insurance provider pays proportionately. These are referred to as deductibles. The insurance company deducts the remaining costs after paying various expenses in a specific proportion. This sum will be directly credited to your bank account by the insurance company. *

• The process surrounding claims is hassle-free overall. It takes little time, and the majority of insurance providers are helpful in processing the claims. *

• Several insurance companies give you a cumulative bonus (CB) if you don’t file any claims within a specific year. This could take the shape of a premium concession or an increase in the sum assured.*

Investing in these products requires a thorough understanding of how health insurance operates. You can only make effective claims and utilise your health insurance coverage to its full potential if you have complete information.

Health insurance is a crucial tool with several health insurance benefits that can help individuals and families cover the costs of healthcare. It works by providing financial protection against unexpected medical expenses, such as hospitalisations, surgeries, and prescription medications.

Health insurance plans can vary significantly in terms of coverage, cost, and provider networks, so it’s important to understand the details of your policy and select a plan that meets your needs and budget. In addition, many health insurance plans offer preventative care services that can help individuals stay healthy and catch potential health problems early.

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.