{"id":28108,"date":"2023-12-19T12:05:42","date_gmt":"2023-12-19T12:05:42","guid":{"rendered":"https:\/\/insuropedia.in?p=28108"},"modified":"2024-02-06T06:52:32","modified_gmt":"2024-02-06T06:52:32","slug":"what-is-indemnity-based-health-insurance","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/what-is-indemnity-based-health-insurance\/","title":{"rendered":"What is indemnity-based health insurance?"},"content":{"rendered":"
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Healthcare inflation in India is increasing at an alarming rate and currently is at 14%. Though there is an increase in life expectancy of people, lifestyle diseases and infectious illnesses are rising year on year. With technological advancement and rising medical inflation rates, a minor health issue can also dent a hole in your pocket. Availing an <\/span>indemnity-based health insurance<\/span><\/a> plan has become an absolute necessity. Let us understand more about <\/span>indemnity health insurance<\/span><\/a>.<\/span><\/p>\n

What does indemnity mean in health insurance<\/b><\/a>?<\/b><\/h2>\n

\u2018Indemnity\u2019 in health insurance refers to the promises made by one party (i.e., the insurance company) in a health insurance contract to compensate for the loss (pay for the actual hospitalisation expenses) to another party (i.e., the insured).\u00a0<\/span><\/p>\n

What is <\/b>indemnity health insurance<\/b><\/a>?<\/b><\/h2>\n

Indemnity health insurance<\/span> is a health insurance plan that reimburses the actual hospitalisation expenses within the limits of the policy. Individual health insurance plans, family floater health plans, and senior citizen health insurance plans are all <\/span>indemnity-based health insurance <\/span>plans. There are also <\/span>fixed indemnity health insurance<\/span> policies available which are referred to as fixed-benefit health plans such as critical illness insurance.\u00a0<\/span><\/p>\n

Let us understand how these <\/span>indemnity health insurance<\/span><\/a> plans work with an example. Mr. X has an indemnity health insurance with a policy limit of INR 5 lakhs. Let us say his hospitalisation bill at the time of discharge is INR 3 lakhs. In this case, Mr. X will be reimbursed the total actual hospital bill i.e., INR 3 lakhs from the insurance company. He would still have INR 2 lakh (INR 5 lakhs \u2013 INR 3 lakhs) left for utilisation for the policy period. It is important to note that the above example is for illustration purposes only. The actual amount of reimbursement depends on the terms and conditions of your health insurance policy.\u00a0<\/span><\/p>\n

Similarly, if Mr. X had opted for <\/span>fixed indemnity health insurance<\/span><\/a> with INR 5 lakhs, the lump sum benefit of INR 5 lakh would have been paid as compensation for the diagnosis of a covered illness.\u00a0<\/span><\/p>\n

What are the benefits of <\/b>indemnity health insurance?<\/b><\/h2>\n

Indemnity health insurance<\/span> offers numerous benefits that make it essential to have for every individual. Let us look at the benefits:<\/span><\/p>\n