The Vocabulary You Need To Understand For Health Insurance Plans In India
Updated On Apr 25, 2021
The insurance market is quite varied and extremely competitive. Within the past few years, the industry has experienced a sudden rise in the number of service providers thus increasing the competition. If you have made your mind to purchase medical insurance plans you should be aware of the common vocabulary and terminology used in the insurance world. This may appear to be a challenging task but you do not need to be anxious. To make sure you are well-known with the insurance vocabulary so that you choose the best health insurance, it is important to go through this post.
1. Health Insurance
This is a bilateral agreement between the buyer and the Health insurance provider that guarantees financial coverage against medical expenses incurred in the treatment and diagnosis of an illness or medical condition. To avail of the facilities, the policy owner is expected to make a payment. The payment amount of different plans differs on the basis of several factors such as the age of the applicant, coverage criteria, occupational hazards, and medical history.
2. Cashless Hospitalization
This is a typical feature of a health insurance plan. Here, the insurance provider has a network of partnered hospitals and medical institutions, and if the policyholder selects to get medical treatment at any of the network hospitals, cashless treatment can be possible.
The process of applying for medical expenses reimbursement incurred in the treatment of the covered members is claimed. Filing a claim is a simple process; claimants can select offline or online modes based on their convenience. After filling the claim form the required documents are attached so that the insurer can verify the expenses incurred. After the provider approves the claim the amount is credited into the claimant’s bank account.
These are secondary components available with the policy that improves the coverage provided over the basic plan. You can buy the add-on riders with the basic cover by paying little amounts. There are various types of add-on riders that offer coverage in case of various events.
This refers to the provider’s maximum payable amount in case of hospitalization or treatment of any of the covered members. The payable amount of the policy is directly proportional to the amount of coverage offered by the plan. So, with a rise in the coverage amount of health plans there is an increase in the payable amount.
Usually, India’s health insurance plans offer coverage for a year, and after that, the policy needs to be renewed. The procedure of reactivating your health policy to provide coverage is known as a renewal.
7. Floater Plans
This is a health insurance policy that offers combined coverage to the family members under the payment. So, all the family members can be covered under a single plan that offers coverage against medical illnesses and conditions.
With these terminologies and vocabularies used in the insurance industry, you will understand the basics of health insurance. This will help you choose the right medical insurance plan to guard yourself and your loved ones.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.