Monthly Archives: April 2016

Insurance Mediclaim Policy Should you consider this health insurance plan?

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National Insurance Company Limited is India oldest general insurance company. It is a government undertaking and provides all types of insurance required today in the world of uncertainty. One of its highly appreciated health insurance policies is National Insurance Mediclaim Policy. This policy covers all the hospitalization expenses that are incurred reasonably and necessarily on the illness or disease of the insured person. What are the features of the National Insurance Mediclaim Policy? What are the major exclusions of Mediclaim Policy offered by National Insurance? Should you consider this National Insurance Mediclaim Policy?

National Insurance Mediclaim Policy Overview and Features

It comes in two forms for individuals as well as for the whole family. With the increasing uncertainty in life, the medical insurance india expenses have become an evitable part of life. It increases the financial burden on an individual all of a sudden. The individual Mediclaim policy helps to scatter this burden.

This policy covers individuals between the age group of 18 to 65 years.

Dependent children between the age of 3 months to 18 years can also be covered under the same policy provided that any one of the parents is covered at the same time.

The sum insured ranges between Rs 50,000 to 5,00,000 in the multiples of 25,000.

What are the Benefits offered by the National Insurance Mediclaim Policy

The policy provides the reimbursement of hospitalization expenses which are reasonable and necessarily incurred under the following heads.

Room, boarding and nursing expenses up to 1% of sum insured per day and 2% of the sum insured for ICU (subject to a maximum of 25% of the sum insured.

Fees of surgeon, doctors, anesthetic and medical practitioners up to the limit of 25% of the sum insured.

Expenses incurred on account of blood, oxygen, anaesthesia, operation theatre charges, surgical appliances, X-ray, artificial limbs, cost of organs, chemotherapy, radiotherapy, medicine and drugs, dialysis, cost of pacemaker, diagnostic material and similar expenses subject to an overall limit of 50% of the sum insured.

Ambulance charges up to 1% of the sum insured with a limit Rs. 2,000 in the overall period of the policy.

Expenses incurred on the homeopathy and Ayurvedic treatment are admissible up to 20% of the sum insured for any one illness.

Health check up expenses are reimbursed at the end of the block of 4 years (continuous claim free policy years), up to 1% of the average sum insured in those 4 years.

Premium paid towards the policy taken for himself, spouse, dependent children or dependent parents are exempt from income tax under the section 80D.

What are the major exclusions in National Insurance Mediclaim Policy?

All pre existing diseases are covered after 48 months of the continued policy period.

No claims are entertained before 30 days from the inception of the policy except for accident cases.

Waiting period of 6 months for certain specific diseases/treatment.

Diseases like AIDS, STD, HIV are also not covered.

Cost of spectacles, contact lenses, dental treatment, hearing aid and cochlear implants.

Cosmetic treatment, hormone treatment, genetic disorders and pregnancy and related complications are not covered.

The claim arising due to any disease or accidental injury arising out of excessive consumption of alcohol/drugs is also considered.

Conclusion: The National Insurance Company is a very renowned company offering a wide range of health insurance covers. In today world, it has become the necessity of all the people. But, pay due attention to the terms and conditions attached to the policy before taking it. Review all the expenses that are covered so that you Don miss out any at the time of claim.


All you Need to Know about the Best Family Floater Plan


Want to insure your family’s health but don’t know where to start? Read all about choosing the best family floater plans and how they are the most economical option for you.

The best way to keep your family safe from any financial burden arising out of hospitalisation and illnesses is to buy a health insurance plan. The family floater plans are health insurance plans which will cover you and your family together on shared basis and with no individual limit for each member covered under the floater.

The points given below will help you understand more about a family floater and the ways which you can choose the best plan.

What is family floater plan and how is it different?

Unlike, individual health insurance plan which covers individual members of the family, a family floater plan covers entire family in a single plan. It works with the assumption that all the members of the family will not fall ill at the same time, or will have the same hospital expenses.

Thus, if any one of the members falls ill, the coverage up to sum insured (amount of cover, or maximum limit of the hospital costs to be reimbursed by the insurance company that you opt for your family) is available while the other healthy members are also covered. Thus, your entire family will have wider coverage with hospitalised members being supported by the non-hospitalised one. This makes the plan more beneficial for family floater insurance policy.

Normally, under a family floater the proposer, proposer’s spouse, a maximum of 2 to 4 dependent children (children financially dependent on the proposer), proposer’s parents, etc. are covered. However, there are a few special plans which offer extended coverage to other family members too.

Example: Say, Mr. Sharma opts for a normal family floater plan for sum insured or coverage amount of INR 3,00,000, then health expenses of Mr. Sharma, 2 to 4 of his dependent children and Mrs. Sharma or any one of Mr. Sharma’s parents would be covered under the same policy up to a maximum of 3,00,000. So Mr. Sharma’s wife is hospitalized and runs up a bill of INR 1,00,000, the family floater plan will be used up to 1,00,000. For the remaining year Mrs. Sharma and the others can still get covered in case they get hospitalized up to INR 2,00,000.


Know your Medical insurance plan well…

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Now that you’re aware of the growing health concerns, rising medical costs and complex treatment procedure you must have decided to buy a medical insurance policy. You call up the agent and he comes fully equipped with brochures and forms, and starts explaining the polices ranging from the simplest to more complex ones before going on to specific covers such as for surgery and diabetes. As your mind is bombarded with information you start weighing the pluses and minuses of each policy, wondering what suits best cover for diabetes and cardiac care, maternity or cancer etc. For a moment you’re left confused and strangled among st your thoughts. General insurance segment has seen a vast expansion in past decade. There are hundreds of policies available that can cater individual needs at optimum costs. So, it is important you do a thorough research before buying the one suitable to your needs.

Your medical policy takes complete care of expenses during hospitalization in case of sudden critical illness, an accident or pre-decided surgery. Although, corporates are offering medical insurance policies to employees but these are identical ones with limited benefits. It is always advisable to purchase a private policy if you wish to get particular form of disease or health issues being covered under the plan.

While taking a medical policy, there are two different ways you can apply for the benefits during emergency. Either you avail cashless facility i.e these bills will be directly paid by the insurance company. Get admitted to empanelled hospital, inform the policy number at the counter and things will be taken care of or else you can pay your bills in the hospital and get a reimbursement afterwards by submitting the same to the insurance company.

Mediclaim policy will not incorporate all the disease right from day one. To incorporate particular health issue you will have to go through a waiting period of around 2-3 years. Hence, you should buy policy at younger age so that as you gradually grow things will be taken care of well. Also, depending on the plan, some other specific ailments too may not be covered. As per some medical health insurance plans 24 hours’ hospitalization may be compulsory for a claim to be settled. You need to, therefore, read the fine print carefully, so that you understand what benefits you can claim for and what you can’t.

Buying medical plans are quite easy in this internet era. There is no need for you to engage yourself in long proceeding and tedious paper work. Just fill up the form online and get your policy instantly. Online policies are quite cheaper compared to traditional ways. At times, you don’t even have to go through the hassles of medical examinations and policy is approved. Online gives the facility of buying a low cost with just a few clicks of a mouse, or tablets or smartphones. You can even renew policies online to ensure you do not have to stay uncovered at any point of time.

Each medical insurance policy has distinct characteristics that cater to requirements you might feel appropriate for yourself or family. You can buy special cover like ‘heartbeat’ plan for individual, couples and nuclear families, women or senior citizen oriented plan, pre and post hospitalization medical costs, costs of all day procedures, emergency ambulance costs and hospitalization expenses covered under your plans.

Online Insurance – 5 Myths About Buying in India


You must have at some time or the other bought a product or service online. These days it could be any out of a movie ticket, a train or air ticket, a book, clothes and even groceries. Then why not insurance? – you may ask. Well, some of us are still not comfortable because even today, insurance, unlike any of the products/services I mentioned earlier, is largely a product which is sold and not bought.

  1. “It is not easy to understand insurance products online”

This is completely opposite of the truth. In fact, insurance products are better understood online because they are shown transparently. When insurance is sold by an intermediary (agent, banker, broker, etc.), they showcase the product in a way that will make the customer either buy the wrong product, or buy it without telling all the features of the policy to the customer. Online insurance products, on the contrary, become easy to understand.

Not just that. Especially when you buy online, it is very easy to compare insurance plans from various companies. If you try to do it offline, you have to physically check and understand each product. Online Insurance buying process is easy and you get the confidence that you are indeed making the best choice among all options in the market.

  1. “Nobody will help me if I buy insurance directly”

Again, completely opposite of the truth. When you buy offline, yes, you would have an agent to help you but most agents are ill-equipped to answer your queries immediately. They typically get in touch with their company and check with them. Sometimes, they can come back with a half-answer and may need to check with the company again. Why do all this? Just get in touch with the company directly. Online Insurance, in fact, offers additional contact techniques such as chat and email to get a response from the company.

  1. “Family may not get the claim if I buy online insurance”

Not true. The way you buy has got nothing to do with the way a claim is processed. The claim depends solely and entirely on what you have mentioned on the application form (physical or online) and medical test (if any).

I would go on to add that in the case of offline, an agent may cut short some important details that may affect the claim. When you buy online, you have the full chance to mention everything clearly (and you should) so that claim is not a issue. So online buying is actually better than physical (or offline).

  1. “My information is unsafe if I give it online”

When you use a physical application form, the information can actually go anywhere intentionally or by mistake of the agent carrying your form. You may also hesitate to mention certain confidential information that is important for the issuance of the policy.

When you fill up an online form, the information goes directly into the company’s computer database. No chance of any leak or misuse. Nothing can be safer than that.

  1. “Online insurance payment is difficult and risky”

Payments are as good or not as any other product that you buy online. No insurance company takes your information directly. They all use the same payment systems (gateways) as other product/service websites (such as airlines, etc.) to process your payment.  If you can share your bank account / credit card for other products, why not for online insurance?

And remember, Online Insurance is the Green way to buy! No paper, no traveling, all from the comfort of your home, making it a nature-efficient way to get protection for your family, your family’s health, your car, your house, your travel, etc. through online insurance products.


How Health Insurance Works


Insurance companies establish their fees by estimating overall health care costs for a specific sector of the population. This includes the cost of primary care, secondary care, tertiary care, and Quaternary care. Primary care represents the bulk of the cost and includes the initial health care services provided by family physicians or general practitioners. Secondary care includes the services provided by medical specialists as well as acute care provided in emergency rooms. Tertiary care is specialized health care such as cancer treatment, neurosurgery and plastic surgery.

Quaternary care is an extension of tertiary care and includes such things as experimental surgery and uncommon diagnostic surgical procedures. Similar to other types of insurance, health insurance is a shared expense. Insured persons pay monthly premiums for the protection and insurance companies pay the claims on health care expenses. The health insurance policies outline what health care services and cost limitations are included in the contract.

Why is Health Insurance Expensive?

The successful operation of a health insurance reviews system depends on several factors, at the root of which is estimating health care costs and how many people will use health insurance. Call it risk analysis. It is somewhat similar to the way banking systems work; customer deposits are invested so the banks can make money. If all depositors demanded all of their money at once, there would not be enough money to pay them. Primary care covers a very large range of health care services and often includes the treatment of chronic illnesses such as heart disease, diabetes, depression, anxiety, COPD and arthritis. Because the population is aging and people are living longer, there are increasing number of older adults pushing the need for primary care health services. In addition, advances in medicine and medical technology is driving up the cost of medical treatment.

The result of this type of third party payment system is that physicians and patients are insulated from the actual cost of health care services. It encourages excessive costs and volume when it comes to health care treatments. It could be compared to people paying cash for everything they purchase versus using credit cards. Credit cards can easily mask the actual amount of spending. Paying cash gives people an immediate visual and, therefore, more accountability for their spending habits.

Types of Health Insurance Plans

Most health insurance plans are employer sponsored. There are also other plans through the military and U.S. Government. People who are self-employed purchase their own private insurance policies. Traditional health insurance plans include varying levels of deductibles. Generally speaking, the higher the deductible, the lower the premium. The downside of opting for lower premiums is more out-of-pocket health care expenses for the insured when the health insurance is used.

In addition, a recent study by Cigna stated that employers can save an average of $9,700 per employee over five years by changing to an account-based health insurance plan. Account-based health insurance plans seem to be successful for several reasons. Companies are saving money. People insured are benefiting with lower premium costs.

Although they are spending money on HSA’s, it is tax-free money. In addition, it makes them more accountable by allowing them to manage their own health care spending. People enrolled in account-based health plans tend to compare health care costs and ask more questions about proposed treatments than those who are insured with traditional health insurance plans.


How health plan protects you and your family?

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We all love ourselves and our family a lot. Today, even a small sneeze from your child rings alarm in your minds and you worry about them. In this way there can be many health issues pertaining to you or your family including your parents which might occur unexpected for which you will need to have sufficient finances for hospitalization and medical expenses. However, the expenses related to healthcare have increased significantly through the years. The costly surgical treatments, medicines, hospitalization, operational costs can burn a huge hole in your pockets, if you don’t have sufficient back up of good health insurance plan. A comprehensive health plan in place will let the insured and the dependents easily mitigate the financial burden arising out from an unforeseen medical emergency. A better way to save something for such rainy day of your health crisis would be investing in suitable medical insurance plan. A health plan should ensure that besides getting a hefty coverage for yourself, the dependents in your family like parents, children, spouse should also remain optimally covered.

In India, it’s a traditional belief that if you haven’t visited doctor for couple of years you’re tend to feel fit and you don’t need any medical aid. But emergencies don’t come knocking at your door. You may never know when you might strike with an accident or critical illnesses or other such health issues. Your parents who are age old will naturally have some sort of health issues. Therefore, having a suitable medical insurance plan will let you manage your finance in time during such health crisis. Today, numerous insurers provide various customized plans depending upon your requirements and most importantly that fits in your budget. With a suitable comparison especially online the insurer can avail a plan ideal for his or her family and personal needs.

Any health insurance policy ideally offers two primary categories A) Cashless Settlement and B) Reimbursement Scheme

In cashless health claims you don’t have to pay a single penny until the discharge from the hospital. Your insurer will do the settlement directly with the hospital. All you need to do is provide the policy number and call up your insurance company to inform about availing the facility. Before you can avail the benefits of a cashless settlement, you will need approval from the third-party admin (TPA). A cashless scheme is further segregated into two types: Planned and unplanned claims. A planned claim will be for situations where you are aware regarding hospitalization such as in case of tonsil removal, cancer, cataract surgery, or normal delivery. While a major accident or other health related incident leading to hospitalization will be termed as unplanned claim. These are situations where you simply cannot anticipate them in advance such as minor stroke, acute appendicitis, road mishaps or something else. A cashless claim is very helpful to people who often travel a lot. It is but obvious you won’t carry such huge cash for hospitalization expenses and borrowing money would be a daunting task especially at unknown places.

Just, incase you’re unable to avail the cashless facility you can take the medical reimbursement facility. Under this option, you first clear your hospitalization and medical bills and then claim for it to the health insurance provider. You need to fill up relevant reimbursement form and submit it along with the medical bills to your insurer. It is alarming to know that only 3-5% of the population in India has a health insurance plan. But, with the launch of various comparison portals, awareness by fitness centre, health care centres, easy online purchases more and more people have started buying health insurance plans for the welfare of themselves and their family.


Checklist for Buying Health Insurance in India

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Right from the inception of health insurance in India, it has seen a lot of changes. Till 2010, more than one-fourth of India’s population has insured their and their family’s health in some form or other. The first health insurance company was launched in 1986, and since then, the industry has constantly evolved itself. Health insurance industry has developed a lot in past 5 years.

There are several types of health insurance policies available in India. Normally, a health insurance policy pays for the in-patient treatment and hospitalization expenses of the insured. There are three broad varieties of health insurance available in India. The most common health insurance plan is hospitalization plan where the insured can get financial support for hospitalization against critical illnesses or accidents.

Point One – Buying a Health Insurance Policy Early Can Help You in the Long Run-

It is advisable to buy health insurance policy early, as it can help provide you support when medical complications arise later. Most of the young people think they are healthy and they don’t need any health insurance policy. Many others spend their entire life searching for a good policy in low premium amounts. However, premium rates are low when you ensure young. As you grow old, premium rates are high as you are more venerable to several diseases and ailments.

Point Two- It Is Difficult To Get the Exact Policy You Are Looking For, So Choose A Policy That Can Score 8 Out Of 10-

It is better to choose policy that can fit right on few of your parameters than entirely. You may not be able to get your dream policy, but there are several policies that have features and benefits enough to help you in the long run.

Point Three-Assess Your Lifestyle and Health Risks Beforehand-

It is important to assess your health and lifestyle. If you eat too much oily food, drink alcohol or smoke a lot, you are quite prone to heart diseases. It is advisable to keep a check on health and get an insurance policy that provides wide medical and hospitalization coverage. You might not need much extensive coverage if you are leading a healthy lifestyle.

Point Four- Get the List Of Family Members You Want To Cover And Check Policies Accordingly-

It is advisable to assess whom to cover amongst your family members and check their health status. If there are more elderly people in your family whom you need to get insured, you can buy policies as per their health condition. If you are newly married and yet to plan for babies, you can opt for a medical health insurance plans that gives maternity benefit and covers pre and post natal treatment expenses.

Point five-which one to choose? An individual policy or a family floater-

It is important to know which one to choose-an individual policy or a family floater. Family floater policies are widely chosen when it comes to choosing a policy. It is because in a family floater policy, one sum assured can protect each and every member of the family. For example, if you have family floater policy of 5 lakh sum assured, any one of your family can get hospitalization and treatment benefit up to an amount of 5 lakh.

Point Six- Think of the Benefits In The Long Run Before Choosing Sum Assured-

You might find paying premium for higher sum assured now, but as medical costs are raising high, you might find your sum assured to be nominal in the future. Assume that you are of 35 years age and insuring for an amount of 5 lakhs. After 20 years, you will be of 55 years and even if we calculate health care services cost inflation by 1%, it would be 20% till you become old and more venerable to diseases and ailments. So, think wisely and invest well so that you need not lament later on.

Point Seven- Know Your Budget Limits-

It is important to calculate well for your future before you invest, but do not invest much more than your budget limit. You may be able to invest well as you have steady source of income now. But in future, it may be quite a costly affair for you to invest on health care policy as you will not be having a steady source of income or you might be living on your pensions.

Point Eight-Prefer Policies with No Capping Limits On Room Rents Over Others-

After certain years when you might need hospitalization, you might find capping limits of your policy doesn’t match at all with present hospital room rent expenses. In that case, you need to shell out some money from your pockets in order to pay the room rent.

Point Nine-Check The List Of Network Hospitals The Policy Offers You-

It is advisable to check the list of network hospitals before you go for the policy. Check whether hospitals in and around your locality are enlisted or not, as this may help you

during availing cashless claims during an emergency situation. Also check whether multi-specialty hospitals of your city are enlisted or not, as this may help you to get specialized treatment without spending a lot of money.

Point Ten- Check the Policy Document Thoroughly For Any Clause That Contradicts Your Interest-

Last but not the least point is to check the policy wordings thoroughly before you decide to invest on it. If there is any clause or wording that contradicts your interest or is not quite favorable, ask the policy providers to explain the clause. If you still find it is not suitable, don’t go for the policy.


Top 5 health insurance plans in India that will smash in 2016


We have stepped into the year 2016 with a bunch of new resolutions. Keeping the ever-rising medical costs in mind, one of your many resolutions ought to be safeguarding health of your family members and yourself. To acquire a financial protection from medical expenses you need to avail health insurance plan online. But, how will you understand which type of medical insurance cover is ideal for you and which health insurance plan will meet your needs perfectly? To ease your quest to find the best health insurance plan in 2016 in India we have come up with a list of 5 best health insurance policies in all categories.

Find the right type of medical insurance that serves you best

The very first thing you need to do is understand what type of health insurance plan you need. Health covers can be classified in four categories. A health insurance provider in India offers the following type of health covers.

Individual health insurance plan: The individual mediclaim policy covers only the policyholder. The insured person is the only one to enjoy the benefits of the coverage on offer by the individual medical insurance plan.

Family floater health insurance plan: A family health plan provides coverage to multiple members of one family. You can pay just one premium for a specific sum assured in a year and protect the health of your whole family.

Senior citizen health insurance policy: Senior citizen health insurance plans are essential for those who have already retired and live on savings and pension. Any medical emergency can make a dent on their savings. So, a comprehensive senior citizen mediclaim insurance policy is a must for them.

Critical illness health insurance policy: Critical illness insurance cover protects you against severe illnesses like cancer, stroke. The policy covers massive medical costs and also provides lump sum compensation.

You have to choose any one the above-mentioned categories. Regardless of which type of health insurance plan you opt for here is a list of top health insurance policies from all categories. Let’s start with individual medical insurance policies.

Individual Health Insurance Plan:

If you think an individual health plan will serve your purpose best, you can select any health cover from the table below. The table reflects best health insurance in India in terms of premium and incurred claim ratio. The premiums are for a 35 year old person who wants coverage of Rs. 5 lacs sum insured. And, incurred claim ratio is the ratio of claims incurred by insurance company to the premiums earned by insurance company.

Family Floater Health Insurance Plans:

While an individual Mediclaim policy covers only the insured, a family floater health insurance plan offers coverage to the entire family. So, if you have a family to look after your best bet is a family floater health insurance plan. By availing a family floater health policy online you don’t have to buy individual Mediclaim policies for every member of your family which will cost more. The premiums are determined for a family consisting of a couple and two children and the age of the most senior member is 35 years old. The sum insured amount for the whole family is Rs.10 lacs.


In essence, when it comes to protecting your and your family’s health you can avail any of the above-mentioned health insurance plans online for complete protection and peace of mind.

In this blog, I have discussed the best Mediclaim insurance online plans that fared well in 2015 and are expected to rock the year of 2016 as well. The compilation of the best health insurance plans in India will hopefully serve you as a useful guide so that you can select a good health insurance company and choose the best health insurance plans in India.