15 Terms You Must Know Before Buying Health Insurance

If you are planning to buy a health insurance policy, you need to be aware about the policy terms. We are compiling a list 15 health Insurance policy terms that you need to know.

blog desc
scroll down
Scroll Now

15 Terms You Must Know Before Buying Health Insurance

Cashless Claim

As the term suggests, the insured can make a claim without paying any cash for the medical assistance at the specified network hospitals.

Coverage Amount/Sum Assured/Sum Insured

It is the maximum amount payable in the event of a claim. The premium of the health insurance policy is dependent on the coverage amount chosen by you.

Critical Illness Policy

A policy for a serious, possibly terminal disease, which is strictly defined by the insurer. Most critical illness policies provide for the payment of a lump sum benefit if the policyholder is diagnosed as suffering from any one of the specified conditions.

Cumulative Bonus

Cumulative bonus is similar to no claim discounts, the only difference being that instead of giving an upfront discount, the health insurance company adds more benefits for the same premium paid.

Disability Insurance

It is a form of insurance that pays a monthly income to the insured when he suffers from total or partial disability caused due to either illness or injury, that affects his capacity to work and earn

Deductible

It is the amount of loss borne by the insured after which the insurance kicks in. This share of expense can be a certain money amount or a percentage of the claim amount. However, bigger the deductible, lower is the premium.

Exclusions

The diseases, conditions or situations in which medical expenses are not covered by the health insurance policy. Exclusions can be of two types – ‘Permanent’, i.e. the ones never covered and ‘First year’, which are ailments covered from second year.

Floater Policy

A policy that is issued with a single sum insured covering number of individuals. The cover can be used by any member of the family any number of times.

Sublimit

It is the limitation in an insurance policy on the amount of coverage available to cover a specific type of expenditure. It can be in amount or percentage.

Loading

It is the amount a health insurance company adds to you renewal premium if you had made any claims in the previous year.

No Claim Bonus

It is a bonus or rather a discount on the Basic Premium if there is a claim-free year in the policy. This bonus gets accumulated with each year you don’t make a claim.

Overseas Mediclaim Policy (OMP)

An Overseas Mediclaim Policy is issued to persons who are undertaking trips abroad for business, pleasure or educational purposes.

Personal Accident Policy

They are issued as fixed benefit policies whereby specified sums are paid on the occurrence of specified events such as death or disability.

Related Articles

Tata AIG Also Offers Insurance for the below products

Two Wheeler Insurance

Travel Insurance

Car Insurance

Health Insurance

2008, Tata AIG General Insurance Company Limited, all rights reserved.
Registered Office : Peninsula Business Park, Tower A, 15th Floor, G.K.Marg, Lower Parel, Mumbai - 400 013, Maharashtra, India. CINNumber : U85110MH2000PLC128425.
Registered with IRDA of India Regn. No. 108. Insurance is the subject matter of the solicitation.
For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure / policy wording carefully before concluding a sale.
Toll Free Number : 1800 266 7780 / 1800 22 9966 (only for senior citizen policy holders). Email Id – customersupport@tataaig.com. Fax Number – 022 66938170
2008, Tata AIG General Insurance Company
Limited, all rights reserved.
Registered Office : Peninsula Business Park,
Tower A, 15th Floor, G.K.Marg, Lower Parel,
Mumbai - 400 013, Maharashtra, India.
CINNumber : U85110MH2000PLC128425.
Registered with IRDA of India Regn.
No. 108. Insurance is the subject matter
of the solicitation.
For more details on benefits, exclusions,
limitations, terms and conditions, please read
sales brochure / policy wording carefully
before concluding a sale.
Toll Free Number : 1800 266 7780 / 1800 22
9966 (only for senior citizen policy holders).
Email Id – customersupport@tataaig.com.
Fax Number – 022 66938170