What is Top-up in Health Insurance Policy?

  • Author :
  • TATA AIG Team
  • Published on :
  • 09/11/2021

With the prices of raw materials and manufacturing processes consistently increasing, there is a corresponding rise in the final price of finished goods. You may have read headlines about the rise of retail inflation almost like clockwork but have you ever seen or paid attention to news reports about the increase in medical inflation?

The cost of medical treatment has been increasing at a rapid rate. Whether it is a doctor's consultation for something as commonplace as a common cold or fever or hospitalisation for critical illnesses such as cancer, your medical bills can be substantial, which is why you must purchase a suitable health insurance plan.

At Tata AIG, you can compare health insurance plans online and assess their premium through our online health insurance premium calculator. If you buy medical insurance online, you can save time and effort, and also benefit from an instant and hassle-free process. However, your health insurance plan may not suffice, particularly considering the unexpected and severe nature of most medical emergencies. This is where a top-up health insurance policy comes in.

Top-up Health Insurance - Meaning

A top-up health insurance plan is an insurance product that provides you medical insurance in addition to your regular health insurance plan or a group mediclaim policy. Therefore, such a plan enhances the degree of financial security you have against different health-related concerns.

A health insurance top-up plan works much the same way as your basic health insurance plan, albeit with a lower premium burden, making it affordable. You must not confuse a top-up health insurance plan with a health insurance rider for a specific illness such as a critical illness rider or a personal accident rider.

A health insurance rider can only be purchased as an additional cover with your basic health insurance plan, whereas a top-up health insurance policy can be purchased as a standalone plan. Therefore, a top-up plan can be used both as an individual mediclaim health insurance plan and an added cover for your regular health insurance plan

Types of Health Insurance Top-up Plans In India

There are two types of health insurance top-up plans available in India, namely a top-up plan and a super top-up plan. Both types of health Insurance plans and their workings have been discussed below.

1. Top-up Health Insurance Plan

A top-up health insurance plan provides you additional health insurance coverage on a per claim basis. You can avail of the sum insured under such a plan only if the claim amount is more than the base health insurance plan's sum insured.

For example, let's say you have a base health insurance plan with a sum insured of ₹5 lakhs and a top-up health insurance plan with a sum insured of ₹7 lakhs. If you have already made a claim of, say, ₹5 lakhs on your base health insurance plan but subsequently need to file another claim amounting to ₹3 lakhs, you cannot file a claim under your top-up plan since the amount of the second claim is below the sum insured of the base plan.

For you to be able to file a claim under your top-up health insurance plan, the amount of the claim has to be higher than the sum insured under the base plan, which is ₹5 lakhs in this example. It is important to note that a top-up plan covers only one claim that is in excess of the claims made under your base health insurance plan.

2. Super Top-up Health Insurance Plan

A Super Top-up Health Insurance Plan works on the principle of aggregate claims and allows you to file multiple claims. In the example cited above, for instance, if you have a super top-up health insurance plan of ₹7 lakhs in addition to a base plan of ₹5 lakhs and exhaust the sum insured under the latter in your first claim of ₹5 lakhs, the subsequent claims can be filed against the super top-up plan.

The first claim under your super top-up plan shall be settled after the deduction of your health insurance deductible. If this claim amounts to, say, ₹5 lakhs, then after the deductible of, say, ₹1 lakh has been accounted for, the claim shall be settled for ₹4 lakhs. You can file further claims against this super top-up plan but the total of these claims cannot exceed ₹3 lakhs since that is the sum insured you have remaining after the first claim of ₹4 lakhs on this plan.

The Tata AIG Super Top Up Health Insurance Plan offers the option of aggregate deductibles. Therefore, each health insurance claim does not have to be higher than your health insurance deductible. Instead, the aggregate amount of all the claims you make in a policy year should be more than this deductible. This allows you greater flexibility in availing of the benefits under your super top-up health insurance plan.

Why You Should Opt For Tata AIG's Super Top Up Health Insurance Plan

The Tata AIG Super Top Up Health Insurance Plan is a pocket-friendly health insurance plan that offers you coverage above and beyond your base health insurance plan. This plan can also work in isolation and provide you with several health insurance benefits. Should you select a super-top up health insurance plan with Tata AIG, you can benefit from the following features.

1. High Health Insurance Coverage

With our MediCare Plus Plan, you get substantial health insurance coverage against a wide gamut of illnesses and medical emergencies. This plan serves as a protective shield for you by helping you bridge the gap between your regular health insurance plan and your medical bills.

2. Feasible Premiums

With the premium for our Super Top Up Health Insurance Plan being pocket-friendly, you can have a higher health insurance cover at a feasible rate. Buying a super top-up plan is usually more cost-effective than buying a basic health insurance plan.

3. Lifelong Renewals

Our MediCare Plus Plan offers you lifelong renewals. So long as you continue honouring your premium payment obligations, your super top-up health insurance plan with us stays intact and at your service.

4. Cashless Claims

Cashless is the name of the game in the twenty-first century and never has that been more evident than in the last twenty months. With the Tata AIG Super Top Up Health Insurance Plan, you get access to cashless insurance at our wide network of 7,200 plus hospitals across the country.

5. Consumables Benefit

At Tata AIG, we take our promise of With You Always seriously, and our cover for consumables used during a hospital stay is one of the testaments to that. Our Consumables Benefit covers the costs of consumables that are directly related to your treatment as long as said treatment is covered under your health insurance plan or super top-up plan.

6. Cumulative Bonus

For every policy year without a health insurance claim, we reward you with an enhancement in the sum assured under your health insurance plan sans any increase in your health insurance premium. For the first claim-free year, we increase your sum assured by 50 per cent and keep enhancing the percentage of this cumulative bonus in each subsequent claim-free year.

7. Optional Global Cove

With our MediCare Plus Plan, you can opt for an Optional Global Cover should you need to travel abroad for the treatment of an ailment diagnosed in India. However, the purpose for your travel must specifically be medical treatment.

8. Tax Benefits

Buying health insurance makes you eligible for certain health insurance tax benefits. Under Section 80D of the Income Tax Act, 1961, you can claim a tax deduction of up to ₹25,000 on your health insurance premiums.

This deduction limit is higher at ₹50,000 for senior citizens. Should you be a senior citizen paying health insurance premiums or an individual aged below 60 years paying health insurance premiums for a senior citizen, say, one or both of your parents, you can avail of the higher tax deduction.

In Conclusion

If you buy a Tata AIG Super Top Up Health Insurance Plan, you get multiple benefits, including a high cover at a feasible premium, cashless health insurance, consumables benefits, and an Optional Global Cover.

Our MediCare Plus Plan has been designed to serve as a standalone health insurance plan as well as a supplement to your existing mediclaim policy. You can peruse our health insurance plans here and buy medical insurance now. Stay safe and healthy!

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

Tata AIG Also Offers Insurance for the below products

Health Insurance

Two Wheeler Insurance

Car Insurance

Travel Insurance