I have a health plan with a sum insured of ₹10 lakh. A year back, I also invested in a hospital cash policy which promised to pay ₹2,000 per day of hospitalization. I was hospitalized for five days where the room rent amounted to ₹25,000. This is covered under my health plan. Would I get the hospital cash benefit if my claim was already covered under my health plan?
Yes, you would. Policies such as hospital cash and critical illness are fixed benefit plans. A hospital cash health insurance plan pays a claim when you are hospitalized for a continuous period of 24 hours or more. This claim is independent of the claim which you receive from any other health plan that you have. Since you were hospitalized for five days, you would get a claim of ₹10,000 under the hospital cash plan even if your health plan has already paid the expenses incurred on room rent.
Regular health plans are indemnity-based plans. These plans reimburse actual expenses incurred. Unlike fixed benefit plans, it is not possible to make dual claims under indemnity-based plans.
I had a credit card limit of ₹3 lakh for several years. Recently, I asked for an upgrade and the bank told me that I am eligible for a credit limit of ₹10 lakh. But to process the request, they are asking me to take credit card insurance. I haven’t really heard about such a plan. What is it? Should I go for one?
Banks may attach two types of insurance with credit card. One is to cover theft, loss and fraud. Misuse of card due to skimming, counterfeiting, phishing, online usage and PIN-based fraud would be covered under such a plan. The second type of plan could be a life insurance or a personal accident plan. In case of death, the outstanding credit card dues would be settled by the insurer. You should understand the detailed coverage and premium charged for the plan. Then, compare these plans with stand-alone plans available in the market. Generally, there is limited impact of such insurances on the bank’s financial underwriting decision. It is unusual for the bank to link the enhanced credit limit to an insurance purchase, so I suggest that you evaluate the insurance as a stand-alone product.
Abhishek Bondia is principal officer and managing director, SecureNow.in. Queries and views at firstname.lastname@example.org