​Shankar, a middle class fellow, was upset about his father’s health. Recently his father fell from stairs at his work place and got serious back injuries. Following the accident, he had already been at home for a month, and was asked to take rest for another couple of months. Shankar’s father is the primary bread earner of the family. Shankar, who works as a trainee, was finding it to meet all the requirements towards household and his father’s medical expenses.

One day, engrossed in his concern’s of family’s current financial state, he came across his school friend  Venkat, on road. They both greeted each other with smiles. However, sensing something wrong, Venkat asked Shankar about what was bothering him. Shankar told Venkat about his father’s health and the financial condition of his family.

Venkat, who works for one of the leading insurance companies, suggested Shankar about health insurance which covers him and his family too.  Acting on his friend’s suggestion, Shankar asked him to give one policy each for his parents and for himself. Venkat explained him all the benefits about a single floater policy that would cover both - him and his parents. Shankar took the policy as suggested by Venkat.

Venkat was happy that he was able to get one health insurance policy from his friend.  Health Insurance is very useful to all class of people especially middle class, who cannot afford to spend in lakhs during sickness which needs hospitalization. People can pay the insurance premium depending upon their age slab. Even it covers pre-existing diseases with necessary approval if it is revealed at the time of taking the policy.  There are plans which covers critical illness also with double the Sum insured in particular plans.  If the person is a diabetic at the time of taking the policy in some of the plans it will be covered after 4 years of continuous renewal of the policy.  In case there is no claim made by the policy holder in a particular policy he can even avail a benefit of NO CLAIM DISCOUNT in which he will get a reduction in policy premium.

The most important benefit is it will be a floater policy where the Sum Insured can be transferred from one insured to another of the family member who are mentioned in the policy.  For eg. there are 4 family members in a policy of Sum Insured Rs 2 lakh in which one person avails a claim of Rs 50,000/- and the balance Sum insured can be utilized by the same person and also the other 3 members also during a policy period.

There are two types of health insurance claims - cashless and reimbursement. In order to avail a cashless service, the claimant would need to take medical treatment in the network hospitals, while for reimbursement; he/she can go to any hospital for treatment.

Article by Tulsi Reddy