Indemnity Health Insurance Plan

When it comes to your, and your family's health, unplanned or planned hospitalisation should not be a time to worry about medical expenses. Health insurance is a secure and safe option to mitigate these medical expenses. This is where Indemnity Health Insurance comes to your rescue. Read on to understand what an Indemnity Health Insurance plan is and its benefits.

Indemnity Health Insurance Policies, are those health insurance plans where you are reimbursed the actual medical expense arising from hospitalisation. You can claim up to the limit of the sum insured as per the terms and conditions. An Indemnity Health Insurance can be purchased as an individual or as a family floater plan.

For example, if Mr A had to undergo a planned surgery in the hospital, the cost was Rs. 3 lakhs. He has an indemnity-based health plan with a coverage of Rs. 5 lakhs; then, his policy will pay Rs. 3 lakhs incurred as hospitalisation expenses.

The calculation is just for explanatory purposes, the actual numbers might differ based on the terms and conditions.

When you are hospitalised and you want to use the Indemnity Health Plan you have opted for, the insurer pays the total amount of the medical bill except for deductibles.

For example when you raise a cashless or a reimbursement claim for Rs. 2.5 lakhs against the policy with a sum insured of Rs. 5 lakhs, the insurer pays Rs. 2 lakhs after considering the deductible of Rs. 50,000.

Most modern health insurance plans sold in India are indemnity-based health insurance plans. You can purchase the plan as an individual or as a family floater plan.

There aren’t many disadvantages of indemnity-based health insurance plans. However, one of the primary downsides of indemnity-based health insurance plans is that it is subject to deductibles; hence, you have to pay a specific portion of the bill from your pocket.

Like all health insurance plans, the pricing of indemnity-based health plans are based on several factors of the beneficiaries. These include age, pre-existing illnesses, the extent of the sum insured, the number of beneficiaries, etc. As for the deductibles, most indemnity plans have deductibles. Hence, you have to pay a certain amount from your pocket.

Before you decide whether to buy indemnity-based health insurance, consider the following factors to get the maximum benefit.

Corona Kavach and Rakshak Health Insurance plans are Covid-19 specific health plans. However, the Corona Rakshak is a fixed benefit plan wherein you receive a lump-sum amount. Here are the coverage details of the Corona Kavach indemnity-based health insurance plan.

Note: Please go through your Corona Rakshak policy document to get the full list of coverages.

You can choose a sum insured of Rs. 50,000 to Rs. 5 lakhs in the Corona Kavach policy, while it is Rs. 50,000 to Rs. 2.5 lakhs in the Corona Rakshak plan. The policy term can be 3.5 months, 6.5 months and 9.5 months for both plans.

Both the health insurance plans provide financial coverage for medical treatments specified in the policy. But, how is the Fixed Benefit Health Insurance Plan different from the Indemnity Health Insurance Plan? Here is a comprehensive comparison between Fixed Benefit and Indemnity Health Insurance Policies to understand both better.

An Indemnity Health Insurance Plan is an ideal health plan if you are looking for a plan that provides broader coverage against most ailments, optimum medical protection and covers maximum medical costs. Typically, for comprehensive health insurance, you should opt for a plan that is an indemnity-based health plan and has the option to include a defined or fixed benefit such as a Critical Illness plan as an add-on.

Disclaimer-The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.