The country's largest health insurance provider New India Assurance (NIA) has come out with the cheapest level cover, whereby hospitalization expenses ranging from Rs 15 lakh to Rs 20 lakh can be assisting for Rs 3,500 a year for someone up to 44 years.
Policy helping whom exactly:
The policy is being sold to those who have a basic mediclaim policy and even uninsured people who are in a position to bear expenses up to the threshold limit of Rs 5 lakh on their own.
Although top-up covers have been present in the industry for various years now, New India Assurance's product has the potential to be disruptive given its pricing and the distribution reach of the country's largest non-life insurer. All Officials said that the cover was 25% cheaper than what was offered by rivals.
"The only sub-limit is in respect of room charges. The room rental limit is Rs 5,000 per day for someone with a Rs 5-lakh threshold and Rs 8,000 if the person goes for a Rs 8-lakh threshold," said Segar Sampathkumar, general manager, and head of health insurance.
Sampath Kumar said that although the policy could be used for all critical illnesses, it would still make sense to buy a small critical illness cover to take care of the non-hospitalisation expenses.
Some Critical illness policies typically facilities a cash benefit for the policyholder upon recognition of the ailment.
A unique aspect of NIA's cover is that for the threshold limit to be reached, entire hospitalization expenses are taken into account disregarding of whether the expenses would qualify as an insurance claim. It means that the insured can spend Rs 5 lakh on a cosmetic surgery (which is not covered under mediclaim) and recover any additional health expense (covered under mediclaim) under the top-up plan.
Apart from being sold as an individual policy, the top-up cover is also a family floater plan where the sum insured is shared among all members of a family.