Question

What do you understand by 'Health Insurance'?

Explain the meaning of health insurance.

What is Health Insurance?

Answer 1

1. As the name suggests, health insurance means insurance for the protection of health against various types of diseases.
2. In cases of ill health, the insured person receives the cost of treatment/hospitalisation up to the insured amount. Mediclaim is the most popular health insurance policy.
3. Under this policy, the insured person gets a cashless facility from the specified hospitals.
4. The cost of treatment (up to 5 lacs) in the hospital is directly paid for by the insurance company of the hospital.
5. Health insurance also covers loss of income from sickness in addition to medical expenses.
   There are several types of health insurance policies.
   
   1. Basic medical expenses: This policy covers expenses for the services of doctors and expenses incurred on medicines.
   2. Major medical expenses: This policy covers the costs of hospitalisation.
   3. Disability income policy: This policy covers loss of income during the period of illness.
   4. Long-term hospitalisation: This policy covers the costs of hospitalisation for a long period due to serious diseases.
6. In health insurance, insurable interest must exist at the time of taking the policy. The Mediclaim policy covers the consultation fee of the doctor, the cost of medicines, and hospital expenses.