Mediclaim and Health Insurance: Is There a Difference?

If you truly feel healthy in body and mind, there is no better feeling you can have. But there is difference between feeling healthy and being 100% sure about it. Even if you can ensure that you are a healthy right now, there is no guarantee that you will stay healthy in the future. It is better if you plan for yourself and your loved ones and without stress in the future. Not sure exactly where to start? The best place to look is insurance companies.

In the case of health issues, you can get the best help in two ways, one is a mediclaim and the other is a health insurance policy. These two products are often confused as the same thing by the general public. However, both of these things are different and can help you in different way with your medical needs. This article will guide you through both these products so you can understand the difference and then make the choice that suits you.

What is mediclaim?

Mediclaim is a health coverage policy that provides you with specific financial protection in the event of a medical emergency. It takes care of all of the costs upon admission to a hospital in the event of these emergencies:

  • In case of accident
  • In case of sudden illness or surgery
  • If any surgery occurs during the policy term

You can claim coverage through mediclaim in two ways. These two ways are a reimbursement claim or cashless claim. * Standard T&C Apply

What is health insurance?

Health insurance is an insurance cover that gives you complete coverage for medical and surgical expenses in case of emergencies. If you have a health insurance, you either pay expenses out-of-pocket which is later reimbursed by your insurance company or the insurance company settles the bill directly with the hospital. The latter out of the two is usually preferrable but depends on the provider your buy the policy from and the details of your claim. * Standard T&C Apply

If you read through both descriptions given above, you are likely to assume both health insurance and mediclaim are the same. However, that is not true. There are lot of differences between the two products that make them a good fit for the right individual.

Difference between Health Insurance and Mediclaim

Mediclaim provides coverage for hospital expenses only. This means you can only make a claim when you are admitted to the hospital. On the other hand, health insurance provides comprehensive coverage that covers more than just hospital costs. Some of these costs include annual health check-up, daily hospital cash, OPD expenses, and AYUSH alternative treatment. Mediclaim also does not have the option to enhance coverage through add-on covers. Meanwhile, health insurance offers add-on covers like critical illness insurance, maternity benefits, etc. Mediclaim also has a limit on its coverage. Usually, the hospitalization cover in mediclaim is limited to ₹5 lakhs whereas health insurance coverage is comprehensive and is determined based on age, city, number of members in a single plan, etc. * Standard T&C Apply

With all of the above in mind it is not difficult to choose between the two if you know what is best for you and your loved ones. Hence, it is wise to compare health insurance and mediclaim plans before finalising either. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.