What is Health Insurance Policy?
The terms Health Insurance, Medical Insurance, and Mediclaim are used interchangeably in terms of medical expense coverage. Health Insurance is an agreement between an insurer and an insured, which states that hospitalization expenses arising out of a medical emergency will be covered, subject to the maximum cap of the sum assured. Such a policy safeguards your family against a financial crisis that may arise because of a medical emergency or a critical illness.
The policy coverage is offered in case of hospitalization for over 24 hours, typically caused by an illness or a disease mentioned below the coverage section in your policy documents. Other conditions like nursing or consultation for a disease, surgery, a diagnostic test, accommodation at the hospital, regular health check-up etc. are also covered by health or medical insurance policies. In return, the insured needs to make a payment on an annual or semi-annual basis to the insurer.