You and Your Health Insurance Policy: FAQs


Like any other insurance, buying a health insurance policy may seem daunting, especially if you have no prior experience.Today, with various online resources like comparison sites, and insurance premium calculators, you can make an informed buying decision.

Still, you may have a few doubts and questions in mind. So, to help you make the right choice, we address a few common FAQs (Frequently Asked Questions) in this write-up.

Can a person purchase more than one health insurance policy?

Yes. If you think the sum assured of your current policy is not enough to suit your family’s needs, you can purchase an additional policy. If you get hospitalised, you can file a claim from both insurers only if the coverage from one insurance policy is not enough to cover the total expenses.

What is a cashless claim benefit in health insurance?

As the name suggests, in a cashless claim, you need not pay anything to the hospital. When you raise a claim, you only need to show the health card issued by the insurance company at the hospital and submit the cashless claim form and the medical documents (bills, receipts, prescription papers, discharge paper) to the insurance company.

After reviewing the bills, the insurance company will settle the bill directly with the hospital as per the policy terms and conditions. However, you must be admitted to the network hospital to avail of this benefit.

Will my health insurance plan be valid all over India?

The insurance companies in India understand that health emergencies may arise anytime and anywhere. Hence, most policies are valid pan India. This means you can seek treatment anywhere in India and file a claim for it with your insurance company.

However, it is advisable to check your policy terms and conditions and see if it has such a clause. Many health insurance plans provide coverage in foreign countries too.

Will I get coverage for my pre-existing illness?

All insurance plans cover pre-existing illnesses only after a specific waiting period. The waiting period may vary from insurer to insurer and the type of illness. Also, some diseases may be excluded permanently from the coverage scope. So, it is better to speak to the customer support staff from the insurance company to know about the coverage of your pre-existing condition before making the purchase decision.

Will I get tax benefits on health insurance premiums?

Yes, the insurance you pay for the health insurance policy is eligible for tax benefits up to ₹25,000 under Section 80D of the Indian Income Tax Act. If you have purchased a policy for your old-aged parents (aged more than 60 years), you can get an additional tax benefit of Rs. 25,000 in a financial year.

Thus, by buying a health insurance policy for you and your parents, you can get financial protection against health emergencies and reduce your annual tax liability.

Is there a limit on the number of claims I can make in one year?

No. Generally, the insurance companies do not have any restrictions on the number of claims you can make in a financial year. However, you will get compensation only up to the policy’s sum assured amount.

For example, if you have purchased a policy of ₹10 lakhs, you can make multiple claims in a year unless the expenses exceed ₹10 lakhs.

Final Word

Knowing the answers to the health insurance-related questions is vital to making the right purchase decision. This will also help you avoid legal issues when you file a claim.

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