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Question: Is there Any Difference between Health insurance and Mediclaim Policy?

Answer: Health insurance and mediclaim are often confused for the same thing especially by a lot of new people not having much knowledge about health insurance. A Mediclaim policy offers cover for hospitalization expenses for a certain pre specified illnesses till a specific limit as per the sum assured.

The maximum cap however for all claims under a mediclaim policy is fixed at Rs. 5 Lakhs. A mediclaim policy works on the principle of indemnity where hospitalization is a definite requirement to consider any claim. Also the mediclaim policy holder needs to spend the money from his own pocket during the hospital stay and is compensated or reimbursed later.

A health insurance policy on the other hand offers a comprehensive coverage covering both pre and post hospitalization expenses. Depending on the health insurance riders, a health insurance policy can also provide adequate coverage for ambulance charges, compensation of lost income and others. The upper limit of a health insurance policy can go as high as Rs 60 Lakhs. Health insurance policies offer the chance of getting a discount on annual premium after specific period of the policy depending on the insurance company.

Another difference between mediclaim policy and health insurance policy pertains to the availability of tax deduction. While Health insurance premium paid towards a health insurance policy offers tax exemption under section 80D of Income Tax Act, the money paid towards mediclaim premium paid for self or spouse or children is eligible for tax exemption of Rs 15,000 under section 80D.

Health insurance and mediclaim are often confused for the same thing especially by a lot of new people not having much knowledge about health insurance. A Mediclaim policy offers cover for hospitalization expenses for a certain pre specified illnesses till a specific limit as per the sum assured.

The maximum cap however for all claims under a mediclaim policy is fixed at Rs. 5 Lakhs. A mediclaim policy works on the principle of indemnity where hospitalization is a definite requirement to consider any claim. Also the mediclaim policy holder needs to spend the money from his own pocket during the hospital stay and is compensated or reimbursed later.

A health insurance policy on the other hand offers a comprehensive coverage covering both pre and post hospitalization expenses. Depending on the health insurance riders, a health insurance policy can also provide adequate coverage for ambulance charges, compensation of lost income and others. The upper limit of a health insurance policy can go as high as Rs 60 Lakhs. Health insurance policies offer the chance of getting a discount on annual premium after specific period of the policy depending on the insurance company.

Another difference between mediclaim policy and health insurance policy pertains to the availability of tax deduction. While Health insurance premium paid towards a health insurance policy offers tax exemption under section 80D of Income Tax Act, the money paid towards mediclaim premium paid for self or spouse or children is eligible for tax exemption of Rs 15,000 under section 80D. Source: CoolInterview.com

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