With increasing costs of health care services and rising lifestyle-related diseases, one thing that has become increasingly indispensable is to have a mediclaim policy. It can be seen as a smart investment by acting as a financial buffer in times of medical emergency, it can be seen as a smart investment.
Let us first understand what mediclaim insurance means and how it can prove beneficial to have one. Also, buying insurance is a process that starts with choosing the most budget-friendly policy per your requirement. The importance of reading the fine print of the policy terms and conditions cannot be stressed enough to avoid any future hassles during claim settlement.
What is a mediclaim insurance policy?
In simple words, mediclaim insurance refers to health insurance that covers the medical expenses and the people dependent on them during an emergency. The insurance covers a wide array of facilities- treatment, ambulance charges, hospitalisation, pre and post hospitalisation charges, ICU charges, room charges, test costs etc.
Since the beginning of the health insurance industry in 1986, almost 30 companies have looked after people’s insurance needs, including top providers such as Bajaj Allianz health insurance company, and more providing a range of benefits to the insurees. Now that the world is becoming more and more digitalised, you can avail health insurance facilities through mobile apps like phonepe. Post the pandemic; almost all these companies provide coverage against Covid-19.
Like any other insurance policy, mediclaim insurance also requires regular premium payments. However, in a hurry to make the payment and renew the policy, people often forget that it is vital to read your mediclaim policy documents.
As important as it is to have your policy renewed in time, it is equally important to do it right by researching well on the policy you are buying. Let’s take a look at some of the key points to keep in mind regarding the same:
Why reading your insurance document is essential?
Changes in terms and conditions
IRDAI (Insurance Regulatory and Development Authority of India) says that the terms and conditions of the policy can be changed if the organisation approves of it and the insured is informed of the same in advance. It is advisable to scrutinise the documents to check if there are some changes in the pre-existing terms and conditions. If the insured finds anything objections to the revised terms, they can consider other insurer plans.
Tax benefits
Your policy can help you manage your taxes effectively if you pay attention to it. Section 80D of the Income Tax Act, 1961, can help you claim a deduction on the premium the insured pays towards medical insurance for self, partner, parents and children. Therefore, for more tax deductions, the wife and husband can pay separately for their respective parents and then claim a separate deduction in their tax returns. So if your current policy does not include any such clause and you want to include it, you can either tell your insurance company to do the needful or change your company.
Addition of dependents
Policy renewal takes place annually, and there is a lot that can happen in one year, like the birth of a child or the death of any family member. Hence, there will be a need to add them to/remove them from the insurance policy.
Inflation
Another possible cause could be that your family’s medical expenses have increased in the last year because of a severe illness of a particular family member, or simply because of the rising inflation and poor economy. Mediclaim Policy renewal is the ideal time to adjust and manage your and your family’s insurance needs.
Extension of grace period
A grace period is a specific period provided by the insurer to the insured if the latter does not pay the premium amount in time, ensuring that the insured does not lose the coverage instantly. Since this period is not fixed, the policyholder can extend/reduce the period as per their will.
The question arises whether the policyholder can avail of the coverage during the grace period too or not?
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The answer to this depends on the insurance company’s discretion that you have subscribed to, as the rules say that if the premium is not received for a certain period, the insurer is not bound to provide the coverage for that period.
Therefore, it is prudent to not wait for the grace period and renew your policy before time to keep enjoying the features of your insurance and avail of their maximum benefits.
Conclusion
Keeping these little points in mind goes a long way in saving any issues when the claims are made. It is always good to be informed to yield the best out of the insurance money you spend.
