Page 7 - Ebook health insurance IC27
P. 7
Sashi Publications
Important Points to Remember
What is health insurance?
Health insuranceisamethod in whichonpayment ofpremiums
the insurance company agrees to pay the policyholder the
cost of medical expenses incurred subject to a specified terms
and conditions during the policy period.
Health insurance in India, sold through insurance companies is
known as private health insurance or commercial health
insurance.
The health insurer usually provides either direct payment to
hospital (cashless facility) or reimburses theexpenses associated with illnesses and injuries.
The type and amount of health care costs that will be covered by the health plan are
specified in advance.
The commonest form of health insurance policies in India cover the expenses incurred
on Hospitalization, though a variety of products are now available which offer a range of
health covers, depending on the need and choice of the insured.
Definitions:
Insurance that compensates the insured for expenses or loss incurred for medical
reasons, as through illness or hospitalization. - Dictionary.com
Health insurance in a narrow sense would be 'an individual or group purchasing
health care coverage in advance by paying a fee called premium.' In its broader
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