Rising inflation and hospitalization expenses make health care accessibility a major concern for the average Indian citizen. Even with emergency reserves, the cost of hospitalization can exceed the funds available. In such cases, the best solution is to avail health insurance policies that offer a daily cash allowance for each day that you are in the hospital. This helps to meet various expenses and save money as well.
The health insurance product that provides this feature is called the Daily Hospital Cash (DHC) Plan and it is offered by various insurance providers across India.
What is Daily Hospital Cash (DHC) Plan?
Under the Daily Hospital Cash Plan, a person is covered when he/she is hospitalized. The insured gets a specified amount of money on each day that he/she is in the hospital. The pay out of this allowance from the insurance provider is not only for hospitalization expenses - the policyholder can use it in any way he/ she deems necessary. Since it is unrelated to mediclaim policy, the policyholder can claim both the mediclaim policy and well as the daily hospitalization cash.
Mr. A has a health insurance plan worth Rs. 5, 00,000 and an additional DHC plan with a daily benefit of Rs. 5,000. If he has been hospitalized for 5 days and gets a hospitalization bill of Rs. 50,000, the health insurance policy will reimburse this expense. At the same time, Mr. A will also get Rs. 25,000 as DHC for the 5 days during which he was hospitalized.
Benefits of a Daily Hospital Cash (DHC) Plan:
- The insured can continue to earn income even while he/she is hospitalized. This makes the plan more beneficial to daily-wage earners and self-employed individuals.
- The insured can use the allowance from the DHC plan in any way he/she feels fit. The amount can be used to settle hospitalization expenses, in order to avoid making a claim from your health care policy. This helps the insured to save the no claim bonus.
- Miscellaneous expenses can be met through the DHC plan, which includes travel expenses, household expenses, etc. There is no restriction on how the insured chooses to spend the amount received as daily hospital cash allowance.
Things to Know about Daily Hospital Cash Plans:
- There can be a limit on the number of days in which the provision is offered during hospitalization. The maximum limit can range from 30 days – 180 days.
- Exemptions might be available for planned hospitalization and emergency hospitalization.
- Daily Cash Benefits for maternity and childbirth is offered only under a few Daily Hospital Cash plans.
Health Insurance Companies Offering Daily Hospital Cash Plan:
Apollo Munich Optima Cash:
The Apollo Munich Optima Cash plan offers various benefits to the insured, such as: A daily cash amount is offered when you are in the hospital due to sickness, accident, etc. Get twice the daily cash amount specified in the policy, when you are in the ICU due to sickness or accident. This can be availed for each 24 hour period only. A lump sum amount is paid to the insured for maternity and childbirth and also to those who are hospitalized for more than 7 successive days.
Royal Sundaram Smart Cash Plan:
The Royal Sundaram Smart Cash Plan offers a daily allowance to the insured based on the type of plan he/she has opted for. There are three plans – the Smart Cash Silver plan, Smart Cash Gold plan and the Smart Cash Platinum plan. The maximum daily benefit offered under these plans are as follows: Rs. 3,000 for Smart Cash Silver plan, Rs. 5,000 for the Smart Cash Gold Plan and Rs. 10,000 for the Smart Cash Platinum plan. The minimum age of entry is 91 days. The daily cash benefit is paid out during emergency hospitalization, planned hospitalization, surgery, accident, joint hospitalization of two or more individuals insured under the same policy, etc.
SBI Health Hospital Daily Cash Plan:
Under the Hospital Daily Cash Plan, SBI offers the insured a daily cash limit worth up to Rs. 3,500. The maximum days during which this facility can be availed is 180 days. This plan has dual benefits since it is both a medical insurance policy as well as a Daily Hospital Cash (DHC) Plan. The hospital cash facility offers cover for your dependent parents, spouse and dependent children. It can be availed by people falling in the age group of 1 year up to 70 years.
Chola MS Hospital Cash Healthline:
There are 3 variants to choose from, under Hospital Cash Healthline plan. The policyholder has the option to choose the one that best suits his/her requirements. Plan A offers Rs. 1000 for each day of hospitalization for sickness or accident and Rs. 10,000 as convalescence benefit. Plan B offers Rs. 2000 for each day of hospitalization for sickness or accident and Rs. 15,000 as convalescence benefit. Plan C offers Rs. 3000 for each day of hospitalization for sickness or accident and Rs. 20,000 as convalescence benefit. These plans offer twice the daily cash limit for ICU hospitalization and a 5% discount on the total premium for adding a family member to the plan.
Cigna TTK ProHealth Cash Plan:
ProHealth Cash plan offers daily hospitalization cash benefit to the insured. There are two plans available – the Basic Plan and the Enhanced Plan. Under the basic plan, the cash benefit is offered for hospitalization due to illness, accident and ICU cash benefit, with worldwide cover. Under the enhanced plan, cash benefit is offered for hospitalization due to illness, accident benefit, ICU cash benefit, convalescence benefit and companion benefit, with worldwide cover. There are two optional covers – the accidental death and permanent total disability cover and the day care treatment benefit.
Future Generali Hospicash Plan:
Future Generali Hospicash Plan offers daily cash benefit to the insured in the event of hospitalization. Some of the benefits of this plan include: daily cash allowance for each day of hospitalization, maximum 10 days ICU hospitalization benefit with twice the daily cash allowance, 3X daily cash allowance for hospitalization outside the city of residence and Rs. 5,000 convalescence benefit.
Tata AIG Individual Accident and Sickness Hospital Cash:
This plan from Tata AIG offers daily benefit for hospitalization of the insured due to sickness or accident. The benefit is offered for a maximum period of 180 days. Medical expenses, which are incurred while in hospital due to an accident, will be reimbursed subject to the stipulation made under the Policy Schedule. 100% coverage is offered for the insured and his/her spouse and 50% coverage for each child.
Universal Sompo Hospital Cash Plan:
The minimum age of entry under this policy from Universal Sompo is 18 years and the maximum age to which the insured can be covered under this policy is 70 years. Dependent children who are 6 months old and above can be added under the Hospital Cash Plan. The benefits offered under the plan include daily cash for hospital confinement, ICU hospitalization with double the daily cash allowance, convalescence benefit of Rs. 10,000 for more than 21 days of hospitalization, and much more.
GST rate of 18% applicable for all financial services effective July 1, 2017.
Disclaimer: Premiums may vary depending upon factors like age, location and prevailing taxes/GST.