Everything You Need to Know About Hospital Cash Cover

What is Hospital Cash Cover in Health Insurance?

Hospital cash insurance is an optional add-on that gives you a fixed daily amount (sum insured) if you are hospitalized for more than 24 hours due to illness or injury. You can buy it along with your main health insurance policy or as a separate cover.

Instead of paying for your medical bills like regular health insurance, this policy gives you daily cash to help with other hospital expenses, such as transportation, food, and consumables. The money you get is usually tax-free, and you can use it however you need.

Key Features of Hospital Cash Cover

Here are some of the benefits of hospital cash cover in health insurance:

• Fixed Daily Payout: A pre-decided amount is paid daily during hospitalisation, regardless of actual medical expenses.
• No Restrictions on Usage: You can use the money for any purpose, like transport, food, or lodging for family, not just for medical bills.
• Flexible Use of Funds: The benefit gives you complete freedom to manage your daily needs during hospitalization and reduces financial stress.
• Works with Health Insurance: Acts as a helpful add-on to your health insurance by covering everyday expenses that regular insurance may not include.
• No Pre-Approval Needed: You do not need any special approval to get the benefit. The process is quick and easy.
• Covers Non-Medical Expenses: Helps pay for things like hospital travel, meals, or temporary accommodation for your family while you are admitted.
• Affordable Premium: It comes at a low extra cost and offers valuable support without a heavy financial burden.

Why are Hospital Cash Benefits in Health Insurance Important?

Hospital cash benefit is important because it provides a fixed daily amount during hospitalization and covers extra expenses like food, travel, or lost income. It acts as financial support for both patients and their families, especially during long hospital stays.

This add-on provides financial help in case of any hospitalization need for the costs that generally get ignored in a normal health insurance plan. Here are some additional benefits of this add-on cover:

1. Lump-Sum Daily Benefit

You receive a fixed daily amount (decided at the time of policy purchase) if you are hospitalised for more than 24 hours. Hospital cash cover helps manage non-medical expenses that regular health insurance may not cover.

2. Flexible Use of Funds

There are no restrictions on how you use the hospital cover cash. Whether it is for food, travel, hotel stay, or any other side expenses, the money can be used as needed by you or your family. You can use the fund based on your needs.

3. Budget-Friendly Premiums

Hospital cash cover is available at very affordable rates. You can easily add it to your existing health insurance policy without any stress on your budget. With a little increase in premium, you can get comprehensive benefits from your policy.

4. Complete Coverage

You can claim hospital cash benefits for up to 30 or 60 days in a policy period, depending on the policy. It also applies to multiple hospitalisation expenses during the year, offering complete financial support to you and your family.

5. Extra Daily Cash for ICU Stay

If you are admitted to the ICU, the daily cash amount is usually higher to help with extra costs like tests and special care. This gives you better support during serious treatments. This extra benefit helps to deal with the financial burden when medical expenses are at their highest.

5. Peace of Mind During Recovery

support during medical emergencies. You can easily focus on the recovery of the insured without worrying about the expenses which are not usually covered in a standard health policy.

Inclusions of Hospital Cash Cover

Some of the usual covered expenses in hospital cash cover are:

• ICU Stay: If you are admitted to the ICU, the daily cash amount you receive will be doubled.
• Travel Expenses: This benefit can help cover travel costs for you or your family, including trips to and from the hospital.
• Tests and Scans: You can use the daily cash to pay for diagnostic tests like blood tests, X-rays, sonography, and scans done during your hospital stay.
• Medicines and Small Bills: This add-on covers medicines and pays for other small items like syringes or extra hospital charges not covered by your main policy.

Exclusions of Hospital Cash Cover

Some of the major exclusions of hospital cash benefits are as follows:

• Expenses are not covered if the patient is treated outside India.
• Outpatient treatment expenses are excluded.
• Staying in a hospital without receiving any treatment from a doctor.
• Hospitalization charges for the first 24 hours.
• Treatment for conditions like ulcers, hernia, cataract, and similar illnesses.

Disclaimer: The above inclusions and exclusions are just for knowledge purposes. Please refer to the policy document to get exact information.

Conditions You Should Fulfill to Claim Hospital Cash Benefit

Here are some conditions that you should fulfill to claim the hospital cash cover:

• To claim the benefit, you must be hospitalized for at least 24 to 48 hours, as per your policy. The daily amount is paid for every hospitalized day.
• You can claim hospital cash benefits only for a certain number of days, usually 30 to 60 days, depending on your policy.
• You cannot claim for daycare treatments or other excluded expenses. Always check what’s not covered in your policy.
• Some policies have a waiting period during which you cannot file a claim. You can only claim after this period ends.
• Severe pre-existing diseases may not be covered, so review the terms carefully.

Conclusion

Hospital Cash Cover is a smart and affordable way to manage extra expenses that arise during a hospital stay. These are the expenses your regular health insurance may not cover. Whether it is for travel, food, or daily essentials, the fixed pre-decided amount gives you the freedom to use the money as needed, without the hassle of bills or receipts.

By adding this benefit to your health plan, you not only protect your savings but also ensure peace of mind for you and your family during medical emergencies.