Page 59 - Ebook health insurance IC27

Sashi Publications

 Under these Critical Illness Benefit Policies once the policyholder is diagnosed with
any specified critical illness, a lump sum payment is made to him on such diagnosis.

 The insurer does not pay any medical expenses related to the disease, it pays only
lump sum amount as agreed. The policyholder may or may not incur such expenses.

 Critical illness is available as a stand-alone product and also as a rider to life and
nonlife policies.

 These policies cover high sum insured than usual indemnity products.
 Some critical illness indemnity products reimburse only some of the cost due to

critical illness and are usually priced less.

Daily Hospital Cash Benefit

 This is an innovative product under which instead of paying full treatment expenses
of the policyholder the insurers pay a fixed daily allowance.

 While taking the policy the insured has to choose the amount of daily allowance
required for example daily allowance ranging from Rs.100 to Rs.5000 are
available. Here the policyholder is not required to choose the sum insured but
instead he can select whether he wants a daily allowance of Rs.100 per day or
Rs.1000 per day.

 He will have to pay the premium based on the amount of daily allowance selected.
 Once the claim occurs the insurance company pays the daily allowance as stipulated

in the policy irrespective of actual expenses of the insured.
 In daily Hospital cash plan principle of indemnity does not apply strictly.
 Say one policyholder is admitted in hospital for five days. He has selected a daily

allowance plan of Rs.1000 per day. The insurance company will reimburse him
Rs.5000 without asking any questions whether he has incurred less or more
amount.

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