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A Guide to Health Insurance for Disabled People?

Published On Jan 15, 2020 5:30 AM By Gunjan Anand

People with disabilities (PwDs) easily find the proper treatment for them in developed countries. But, when it comes to developing nation like India, reaching out to healthcare facilities is a tedious task for them, especially with soaring medical expenses. As indicated by census figures of the year 2001, India owns more than 21 million individuals who are experiencing either sort of disability. These figures exist in spite of the fact that there are plans introduced by government and insurance agencies to stimulate comprehensive improvement and monetary independence of disabled people. However, a ton of viewpoints relating to disability health insurance still expects a lucid solution. 

Congenital Disability and Insurance Schemes

When it comes to Congenital Disability, it can be understood as a medical condition, which exists in a person right from his or her birth. However, most of the insurers in our country don’t offer coverage for such disabilities. 

But in 2008, LIC introduced a rider for congenital disability under its Jeevan Bharti-I plan for women. Still, one can find many endowment policies in the market pertaining to handicapped individuals by offering general features and benefits in comparison to the regular health insurance plans. Hence, taking insurance just as an investment tool, may not provide satisfactory results to disabled people. 

Accident Disability Insurance

Unlike congenital disability, where people are considered to be in a high-risk category, individuals suffering from accidental disabilities are easily entitled to get coverage under health insurance policies

The accidentally disabled persons are treated just like normal customers by almost all the health insurance providing firms companies. In the cases of accidental disability people, insurers don’t levy additional costs or restrictive clauses on the cover.

By simply buying a health insurance , people can get themselves prepared for future medical emergencies. Despite facing different misconceptions about health insurance, suffering from an accidental disability couldn’t stop you from purchasing a health plan.

Eligibility for High-Risk Covers

Like any normal applicant, disabled people too will have to give the reasons to select a high-risk coverage policy. The major reason for anyone selecting high-risk insurance product is basically to safeguard their dependent family members during an unfortunate incident. The high-risk covers cost more than normal insurance policies. 

You may also like to read: Myth Busted! Health Insurance for Differently-Abled

Information to be Declared

While filling the proposal form, the customers should declare their disabilities duly in detail and must submit the documents afterwards as demanded by health insurance companies.

Many firms seek a report from a doctor to understand the level of hindrance a disability could be making in a person’s day to day work. Firms can also ask for the information related to any of your tests or a recent visit to the doctor.

Tax Benefits for Disabled Persons

People with disabilities can avail the tax benefits under section 80U and section 80DD of the income tax act. Under the section 80U, an individual is entitled to receive a tax deduction of Rs 50,000 for having 40% to 79% disability, while a person with above 80% disability can avail the tax deduction of Rs 1,00,000. 

On the other hand, as per section 80DD, the dependent disabled person’s family members can claim deductions. If his or her disability is between 40% and 79%, the family member can receive deductions of Rs 50,000 on the health insurance plan that covers the disabled. Whereas, for disabilities, more than 80%, Rs 1,00,000 deduction can be availed. 

How Is Eligibility Determined?

The eligibility criteria for health insurance for differently abled is as follows:

  • State of Health - In case of disabled individuals, health insurance companies may check the state of health in the previous months. Considering the same, the health insurance company may establish the risk extent and degree that it may need to take. On the basis of the same, the company may approve or reject the coverage. 
  • The Earning Capacity of the Family - The health insurance company takes into account the earning capacity of the family which the dependent insured individual belongs to. Most insurers decide  coverage and premium based on the same.

Insurance Schemes for the Differently-Abled by the Indian Government

Please go through the below mentioned two insurance schemes for disabled individuals:

1. Niramaya Health Insurance Scheme

This is a comprehensive health insurance policy that is available all over India, except for Jammu & Kashmir. This plan was launched for people suffering from autism, cerebral palsy, mental retardation, and multiple disabilities. A few major elements of the plan comprise:

  • No need for pre-insurance tests
  • No age limit
  • Rs. 1 Lakh coverage
  • Rs. 14,500 OPD expense limit
  • Rs. 1,000 transportation cost covered
  • Premium of Rs. 250 for family income less than Rs. 15,000
  • Premium of Rs. 500 for family income more than Rs. 15,000

2. Swavalamban Health Insurance Scheme

This policy provides comprehensive cover to beneficiaries and their family. The policy provides cover for individuals suffering from blindness, hearing impairment, loco-motor disability, low vision and more. The prime features of the Swavalamban Health Insurance Scheme include:

  • Eligible for people between age 18 years up to 65 years
  • Covers disabled person, spouse, and two children
  • Family income limit less than Rs. 3 Lakh per annum
  • Provides cover for more than Rs. 2 Lakh

Also Read

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