Understanding Hospital Daily Cash Policy: A Comprehensive Guide to Health Insurance Benefits

Health Insurance plans are essential for sheltering people and families from unexpected healthcare and medical expenses. Amid heaps of schemes, the Hospital Daily Cash Policy stands out as a bright spot of financial stability in this context. This feature sets health insurance plans apart from regular health insurance plans in India. It offers policyholders a daily cash benefit while the individual is in the medical facility. Let’s explore the details of this standalone scheme

What is the Hospital Daily Cash Policy?

The Hospital Daily Cash Policy is a component of healthcare insurance with some extra coverage. This can be an inclusive or can be an add-on to your cover. You can do this during policy purchase or renewal. 

In this scheme, the policy owner receives cash compensation every day. Insurers do this to help their customers with some hospitalisation bills that aren’t protected by the basic policy. The reimbursement sum is fixed when the policy is issued and remains unchanged. Expenses like room rent, food, daycare, nursing expenditures, and other ancillary hospital services come under this policy. You can only claim this benefit if your hospital stay exceeds 24 hours. 

The daily allowance amount may range from ₹500 to ₹3,000 or more. The actual amount depends on the insurance provider and the plan you choose. As per the hospital cash policy, the amount paid remains constant, irrespective of the real expenditure amount.

Basic Health Plans Vs Hospicash

The daily cash benefits of health insurance provide a more flexible way to handle healthcare costs than conventional health insurance benefits. 

Hospicash allows people to use the cash benefit based on their requirements, which is helpful when real medical expenses differ.

Hospital Daily Cash policy ensures cash assistance regardless of whether customers need surgery, urgent treatment, or a basic routine activity. On the other hand, basic health insurance plans limit reimbursement for certain treatments or operations. Plus, it reimburses only a specified fixed amount at the end. 

Merits of having a Hospital Daily Cash Policy

• If an ICU admission occurs, the benefit is doubled or tripled.
• Pre-admission medical testing is not necessary.
• It permits paying medical expenses without filing a grievance and allows maintaining the no-claim bonus.
• Hospitalisation for unintentional physical harm (Benefit of Convalescence): Onetime reimbursement for stays in the hospital longer than twenty days.

Coverage under the Hospital Daily Policy

The two main categories that hospicash covers are:

• Attendant Expenditures: In most cases, a caregiver looks after the patient. He or she can be a family member, a relative, or a partner. So this puts pressure on the spending by adding expenditures like transport, food for attendants, etc. Hospital daily cash can be the saviour here. Patients can use the daily reimbursement to pay for essentials for their families. Hospicash generally provides financial assistance for various expenses incurred when receiving treatment.
• Uncovered Costs: Health insurance providers do not reimburse specific costs related to hospitalisation. These are classified as non-admissible costs. For example, the cost of diagnostic tests, syringe costs, etc. Notwithstanding such inclusions and exceptions, the health insurance provider funds the customer in the hospital in cash each day. This can cover unforeseen expenses like travel, hotel, utilities, car service, attendant food, etc.

Note: Coverage differs based on the insurance company.

Other Crucial Aspects of Hospital Daily Cash Policy

The following are some crucial elements of hospital daily cash:

• Hospicash is only available for more than 2-3 days of consecutive hospitalisation.
• The maximum benefit can be claimed only for 30- to 60-day days.
• A deduction of one day’s hospitalisation is charged.
• After the release date, there is often a 30-day wait within which the coverage cannot be renewed.
• The cost of the hospital daily cash policy depends on various variables, such as an insured’s age, the length of coverage, etc.

Key Takeaways

Your health insurance may not cover all the hospitalisation expenses. Hence, the hospital daily cash policy offers an effective funding solution through its fixed daily cash advantages during treatments. With its flexibility and extensive coverage, hospicash becomes an appealing alternative when you make health plans comparison for medical emergencies. Buy health insurance after carefully considering all the factors and making the right choice.

Additionally, consider choosing platforms like PhonePe for a seamless and hassle-free insurance purchase experience.