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This health insurance plan increases sum insured in line with inflation

Care Health Insurance's 'Care Shield' takes into account Consumer Price Index (CPI) inflation rate at the time of policy renewal every year. (Shutterstock)Premium
Care Health Insurance's 'Care Shield' takes into account Consumer Price Index (CPI) inflation rate at the time of policy renewal every year. (Shutterstock)

'Medical costs keep rising each year due to annual inflationary pressures. Coronavirus, the ongoing pandemic has only exacerbated the situation. Care Shield is an innovative solution that protects our customers from the aforementioned concerns.'

Coronavirus pandemic has taught us the need for an adequate sum insured in health insurance policy to take care of medical contingencies. The meaning of adequate sum insured changes year after year due to inflation. Medical inflation in India is quite high. Care Health Insurance's 'Care Shield' takes into account Consumer Price Index (CPI) inflation rate at the time of policy renewal every year. Care Shield increases the sum insured at the time of renewal as per the CPI inflation rate for the previous policy year declared by the competent government authorities. This ensures the customer’s policy sum insured is adequate to meet future treatment expenses.

Care Health Insurance (formerly Religare Health Insurance) launched 'Care Shield' in the first week of December. The triple-innovation product takes into account rising inflation, coverage of certain medical expenses hitherto uncovered and safeguarding the No Claim Bonus benefit from lapsing in case of moderate claims of up to 25% of Sum Insured.

“Medical costs keep rising each year due to annual inflationary pressures. Coronavirus, the ongoing pandemic has only exacerbated the situation. Care Shield is an innovative solution that protects our customers from the aforementioned concerns," says Anuj Gulati, Founding Managing Director & CEO, Care Health Insurance.

Inflation Shield takes into account the rising treatment costs due to inflation in India, which impacts the ability of patients to afford medical care in future. Consequently, policyholders purchase new policies or increase their existing policy sum insured for keeping the coverage at par with the higher costs arising from inflation. Once added to a policy, Care Shield takes care of rising medical costs.

The other innovative feature in 'Care Shield' insurance plan is the Claim Shield. Health Insurance policies have a list of 60-plus items such as belts, braces, buds, crepe bandages, gloves, leggings, masks, oxygen mask, spirometer, thermometer, ambulance equipment and suchlike, which are usually consumed during treatment but generally not covered in the policy. Claim Shield also provides coverage for these items in case of hospitalisation.

The third feature is No Claim Bonus Shield – a reward given to policyholders during renewal in case NoHospitalization Claim is registered for the policy in the previous year. For instance, if a customer purchased a policy on 01 January 2019 and No Claim was registered during the policy year – 01 January 2019 to 31 December 2019, then the policy sum insured is hiked by 60% on renewal at no extra cost. This feature also ensures that any low-value claim (<25% of SI) does not lead to any erosion of the accumulated No Claim Bonus.

Insurance companies in India including life insurers have become very innovative in bringing different kind of products, riders at affordable rates in the wake of coronavirus , which has hit entire world. Don't jump into any plan. Understand your need of medical insurance, calculate the sum insured you would be comfortable with to buy a insurance policy for yourself and your family. And, stay sufficiently insured even after coronavirus vaccine is out.

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