Difference Between Mediclaim And Health Insurance

There is a widespread misconception that mediclaim and health insurance are synonymous to each other but that is not the case. They are two sides of the same coin. Often used interchangeably, a mediclaim is limited to hospitalization expenses, whereas health insurance offers wider coverage. Before we understand the differences between the two, let us look at each of them in detail.

Mediclaim, often referred to as mediclaim insurance, is a form of health cover that mitigates your risk in monetary terms. It covers your hospitalization expenses along with any specific ailments and treatments that you incur during hospitalization. You can avail a mediclaim health cover for a pre-specified sum along with tax benefits under section 80D of the Income Tax Act. Such a deduction under the tax laws can be availed for the insurance premium paid for your family (spouse, children, and parents) too.

What Is Mediclaim?

Mediclaim, often referred to as mediclaim insurance, is a form of health cover that mitigates your risk in monetary terms. It covers your hospitalization expenses along with any specific ailments and treatments that you incur during hospitalization. You can avail a mediclaim health cover for a pre-specified sum along with tax benefits under section 80D of the Income Tax Act. Such a deduction under the tax laws can be availed for the insurance premium paid for your family (spouse, children, and parents) too.

What is Health Insurance?

Health insurance is a form of medical cover where the insured is either reimbursed for the hospitalization expenses or is offered a cashless facility via the insurer’s network hospitals. You can avail a more exhaustive coverage from a health insurance policy than from a simple mediclaim cover. Including usual ailments, you can also get yourself a critical illness cover or a comprehensive insurance cover.

You should be aware that critical illnesses like cancer or diseases of the heart do not form a part of your primary health insurance plan; it needs to be opted for with your normal health cover.

Additionally, your health insurance policy can either have a deductible or a co-payment clause, or both, that must be understood carefully. A deductible is a pre-decided amount that you have to bear at the time of a claim. Co-payments, on the other hand, are a certain percentage of the claim that is taken care of by the insurance company during hospitalization.

After reading the above points carefully, let us move on to understanding the striking differences between the two.

Mediclaim vs. Health Insurance

Still, a majority of consumers prefer buying an insurance policy offline. This is because they prefer a one-on-one interaction with the agent at the time of making a purchase. They are unsure about the security of the transaction and prefer to have an agent to explain the plan and guide them through the process. Additionally, many people are concerned about the security of their personal details and are not comfortable to share the same. A small percentage of India’s population does not have access to the Internet while many find the process difficult.

Mediclaim vs. Health Insurance

• A mediclaim covers hospitalization at most times while health insurance includes hospitalization expenses, including pre- and post-hospitalization, as well as a whole lot of added features like capped loss compensation, ambulance charges, and the likes depending on the terms and conditions of your policy.
• To avail mediclaim benefits, it is necessary for the insured to get hospitalized, whereas this is not the case under a health insurance policy.
• The cover is limited and restricted under a mediclaim policy but can be increased as per your needs under a health insurance plan. A comprehensive health insurance plan covers a varied range of ailments that are included in the basic plans offered by leading insurers.
• You can avail add-on benefits like critical illness coverage, personal accident coverage, accidental disability coverage, and maternity coverage, etc., under a health insurance plan; this is not available under a mediclaim policy.
• Mediclaim policies lack flexibility when it comes to the duration of the policy and the premium amount; the same can be modified according to your needs under a health insurance plan.

Make sure that you compare the various policies on offer and make a wise decision based on your needs before choosing a health insurance plan. You cannot spot a clear winner between mediclaim vs. health insurance without taking a closer look. It purely depends on your current financial position, your family medical history, and other similar factors. Upon understanding the differences between the two, you must consider the type of health coverage you require before buying one for you and your family.

You should understand what is mediclaim insurance policy so that you make an informed choice at the time of purchasing a health insurance plan. Click here to read more about the various types of insurance policies and how are health insurance premiums calculated on our health insurance blog to stay updated!