With the surge in healthcare costs, coming up with enough money at the time of dire need is infeasible. A cashless health insurance can save the day by enabling you to receive good quality healthcare services without paying anything from your end.

In retrospect, a cashless health insurance policy covers all the health benefits of cashless hospitalizations under their network. Hence, instead of worrying about the hospital bills, you can focus on the treatment and recovery from the health ailment.

Types of cashless health insurance

There are three types of cashless health insurance in India:

  • Cashless Family Health Insurance
  • You can cover all the members of your family with the help of this plan. The individuals who fall under this coverage are referred to as “members”.

  • Cashless Individual health Insurance
  • As an individual, you can avail the cashless claims against the hospital expenses and other benefits.

  • Cashless Health Insurance for Senior Citizen
  • Especially designed for senior citizens, this covers hospitalization, ambulance costs, and even pre-existing diseases among other benefits.

Advantages of cashless health insurance

  • Provides the necessary support for medical emergencies
  • Unforeseen or not, medical emergencies tend to burn a hole in our pockets. A cashless claim can save the patient’s family from worrying more about the medical expenses than their health.

  • Extensive coverage
  • Most of the key features of a cashless health insurance policy vary from insurer to insurer. Nevertheless, most of the cashless health insurance policies cover pre and post hospitalization charges, ambulance expenses, inpatient care, domiciliary treatment, critical ailments like heart attack, etc. Some cashless health insurance plans also provide health checkups and diagnostic tests at regular intervals.

  • Provides coverage during travels
  • It takes a while for everyone to adjust to the climate or the environment of a new location. Availing the right treatment in such a case is necessary. A cashless health insurance will provide reliable medical services at a network hospital in that location too.

  • Tax benefits
  • Under Section 80D of the Income Tax Act 1961, when premium payments are made towards cashless health insurance policies, you are eligible for the tax benefits. It can go up to INR 25,000 for individuals of age below 60 years and up to INR 50,000 for senior citizens.

How does it work

  • A list of network hospitals is curated by the health insurance companies to collaborate with across various locations in India.
  • Cashless health insurance policyholders will be eligible to avail these cashless claims if they are hospitalized at any of these network hospitals for medical treatment.
  • The health insurance company will directly pay the hospital of all the medical expenses incurred up to the application sum insured.

Learn more about different Health Insurance Plans here.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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