Medical Insurance in India
Overview
Medical expense has become a part of the monthly budget in today’s fast paced world. It is required for all the family members starting from the just born to the aged people. Medical Insurance is a form of insurance that is paid for the security of medical expenses or any uncertainity in health incurred by the insurer and his family.
Importance
A recent study says that the costs related to healthcare have shot up by 20% annually. A decade back the scenario was different in terms of healthcare as ailments such as cancer, heart diseases and diabetes were very rare. But given the hectic lifestyle in this generation, it is important to have a health insurance to face any adversities. Nowadays both private and public companies insist on employees having a health insurance.
Rashtriya Swasthya Bima Yojana
The Government of India too under its Rashtriya Swasthya Bima Yojana( RSBY ) provides for medical insurance to five members in poor families. The scheme initially launched for families below poverty line, now also covers other unorganized sectors like porters, miners, etc. and aims to cover many other sectors as well. There are private as well as government hospitals empanelled under this scheme to provide medical facilities to the insured. Thus, the Government too promotes health insurance for a country that has such a huge population.
Benefits
- Having just one health insurance is sufficient for one whole family.
- There is a cashless facility to the insured in case of any hospitalization of himself or his family member with an illness. This facility is available in most of the good hospitals in India.
- The insured will get cash benefits during hospitalization if he has a medical insurancepolicy.
- The insurance companies take care of both pre and post expenses of hospitalization.
- The insurance also covers the ambulance charges.
- The expenses that occur 60 days prior and 90 days after hospitalization are taken care of by the insurance policy.
- The premium paid for this insurance has tax exemption.
Family Floater Policy
The uniqueness of this policy is that only single premium payment is to be made for all the family members.
Individual Health Insurance
This is a popular health policy which most of the reputed insurance companies offer. In this, the insured gets cover for any illness. The expenses of hospital will be covered upto the sum assured by the insured. The premium payment also depends on the sum assured.
Tax Implications
- The tax is exempted according to Income Tax Act under the following situations:
- If the premium paid per annum is upto Rs.15,000 for self, spouse and children (only for 2 children)then there is a tax exemption under Section 80D of the Income Tax Act.
- The insured can claim the amount upto Rs.15,000 if he/she has parents as dependents.
- For senior citizens the tax deduction amount is Rs.20,000.
Health Plans with Returns
It has time and again been enunciated by insurance companies that insurance is just a means to covers the risk on life, health, assets, etc, but most of the individuals do not want to invest in an insurance policy if they do not get returns on the same. To address this issue, insurance companies have now come up with schemes that not only provide insurance cover but also give some assured returns. The unit-linked health covers createa savings fund for the insured apart from covering health claims for the year. The fund value is returned at maturity and in case of demise during the tenure, the amount is paid to the nominee.
Top Medical Insurance Companies
- HSBC
- ICICI Lombard Plans
- United India Insurance Company Limited
- Bajaj Allianz
- New India Assurance Company Limited
Contributed By: Aruna Sharma |
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Mrs. Sharma holds a Masters in Financial Management from University of Mumbai. She has graduated from the University of Mumbai. | |
