Hospital Daily Cash Insurance: A Complete Guide

Hospital Cash Benefit Policy is a type of insurance policy that offers financial assistance to individuals who are hospitalized. It covers various expenses related to hospital stays, including accommodation charges, along with supplementary costs like commuting and accommodation for accompanying family members.

This article will present a synopsis of hospital daily cash plans, which includes their advantages, coverage, and limitations.

What is Hospital Daily Cash coverage?

Hospital Daily Cash coverage is a type of Hospital Cash Benefit coverage that provides a daily cash benefit to policyholders who are hospitalized. The amount of the benefit is predetermined at the time of purchase, and is usually a fixed daily or weekly amount. This coverage is intended to assist with the extra expenses associated with hospitalization, such as transportation, lodging, and other out-of-pocket expenses. The amount of the benefit may vary depending on the specific plan and the length of the hospital stay.

By covering expenses that aren't covered by traditional health insurance plans, hospital daily cash plans can help reduce treatment costs. Policyholders will receive a fixed daily allowance for each 24-hour hospitalization, which can be used to cover miscellaneous costs incurred during the hospital stay.

What are the benefits of a daily cash plan?

This payment is meant to cover additional expenses that are not typically covered by comprehensive health insurance policies, such as consumables and costs associated with accompanying family members.

A daily cash plan can offer a range of benefits to policyholders, including:

Additional expenses covered by a health insurance policy: 

Coverage for additional expenses not typically covered by comprehensive health insurance policies, like consumables and costs associated with accompanying family members.

Your daily cash allowance, which you receive once you have been admitted to the hospital, will provide you with a lump sum that you can use as you need it.

Compensation for income loss: 

Compensation for income loss, which can be crucial for individuals who will temporarily lose their regular income due to hospitalization. Hospital Daily Cash can help replace that lost income.

To be used towards household expenses and miscellaneous costs: 

If you are the only earner for your family, going to the hospital could put you and your family in financial trouble.

This fund will aid your family in managing household expenses and other financial obligations in situations where your income is uncertain.

Safeguarding Your No Claim Bonus: 

If you are admitted to the hospital for a minor medical condition, you can use your savings to pay your hospital bills.

For your healthcare expenses, you don’t have to file a claim. This will allow you to keep your job No Claim Bonus, which you may have lost otherwise.

No Medical Check-up:

You don't need a medical check-up for Hospital daily cash policy. They either don't ask for one or have strict rules to qualify, which makes it easier for people to get coverage.

Peace of Mind:

Knowing that a daily cash plan is in place can give policyholders peace of mind during a hospital stay, as they will have financial assistance to cover additional expenses

Lower Treatment Costs:

Since daily cash plans cover certain expenses that may not be covered by health insurance, they can help reduce the overall cost of treatment.

It's important to note that the specific benefits of a daily cash plan may vary depending on the policy and the insurer, so it's important to review the policy terms carefully before purchasing coverage.

What coverage is included in the plan?

The Basic Plan includes the following coverage in the hospital daily cash policy:

Sickness Cash Benefit:

The insurer will pay the daily cash benefit specified in the Policy Schedule if the insured person is hospitalized for medically necessary treatment for an illness during the policy period.

Accident Cash Benefit:

If the insured person is hospitalized for medically necessary treatment because of an injury, during the policy period, for the amount specified in the policy schedule, the insurer will pay the daily cash benefit (a benefit equal to twice the sickness HC benefits) for each continuous, completed period of 24-hours.

ICU Cash Benefit:

For every continuous and complete period of 24 hours of hospitalization, the insured person will be paid the daily cash benefit (benefit ranges between 1-3 times the daily cash benefit).

Convalescence benefit:

The insurer will pay a lump sum amount equal to the daily cash benefit. This amount is calculated from the policy schedule and ranges between 1 and 5 times the daily cash benefit amount every 24 hours. 

This benefit is only available once per insured person and per policy year.

Exclusion under Hospital Daily Cash Plan:

Pre-existing diseases will not be covered until 48 months of continued coverage.

Standard Exclusion

• Hospitalization resulting from artificial disasters such as war or invasion
• Surgeries that are performed for the purpose of enhancing facial features, including plastic and dental surgery, as well as surgeries for infertility and congenital disorders
• Treatment of mental illness
• General debility, growth hormone therapy, congenital disabilities, genetic disorders, general debility and other similar treatments
• Treatment for alcoholism and drug addiction resulting from intentional self-injury
• Hospitalization for medical examinations such as X-rays and other diagnostic tests

Waiting Period for Hospital Cash

This policy requires that you wait for 30 days before making a claim.

Who can be insured?

You can insure yourself, your spouse, dependent parents, and dependent children between the ages of 91 days and 65 years. The policy can be renewed for a lifetime. 

All your family members can be covered, including dependent parents, children, and spouses. The policy can be renewed for life.

Things to consider before Buying Daily Hospital Cash Benefit Policy

When you consider a daily cash benefit from the hospital, there are some things that you should be aware:

• You must be in the hospital for at least 24 hours to receive daily cash benefits.
• This facility does not cover Day Care Procedures.
• In general, the policy limits how many days a patient is hospitalized.
• Daily cash benefits under health insurance are subject to a Waiting Period.

Require  document to buy the Daily Cash Plan?

• Proof Of Identity – Aadhaar Card (PAN Card), Passport, Driving License, or Voter ID
• Proof Of Address Passport, Telephone Bill or Electricity Bill, Ration Card, or Bank Account Statement
• Proof Of Age – PAN Card (Birth Certificate, Birth Certificate), Passport, Voter ID, and Driving License
• Income Proof– Form 16 – Salary Slip, Form 16 or Employer Certificate Form
• Check-up for medical conditions

How do I claim Daily Cash Allowance?

Claims Process:

Step 1 Check Network Hospitals: Contact your preferred network hospitals of Company.

Step 2– Patient Identification: Present Cashless Card, or provide policy number, together with valid ID Proof such as Passport, Voter ID, for verification

Step 3 Cashless Identification Request Form. The form must be completed within 48 hours of being admitted to the hospital in an emergency. The form must be received at least three days before hospitalization if you plan on hospitalization.

Step 4 Hospitalization Request Review: Insurance Company contacts the hospital network. The notification is sent to you via email or SMS.

Step 5 Claim Settlement:  Health Insurance Company will verify the documents and settle the claim.

Reimbursement:

Step 1 – Contact an Insurance Company to start a claim.

Step 2 – Submissions of claim documents.

Step 3 Verify the documents. If necessary, the insurance company might request additional documents. The insurance company will verify the authenticity of all documents before reimbursing the claim.

Documents required for claim submission

• The hospital will fill out the Claims Form.
• Copy of a policy or health card
• KYC documents (Photo ID and Address Proof, Age Proof)
• Certified Hospital Registration Copy
• Original discharge card/day care summary/transfer summary/death summary
• Original hospital bills, receipts, and diagnostic test reports are required.
• Letter from physician

Conclusion

In conclusion, it is evident that Hospital Cash Benefit policies play a crucial role in providing financial support during hospitalization, especially for those who are the primary earners for their families.

This plan supplements to your regular health insurance coverage and covers expenses not covered by the Insurance Health Policy.

These policies offer a valuable safety net by covering various expenses related to hospital stays, without requiring a medical check-up in many cases.

By preserving your No Claim Bonus and opting for a suitable plan, you can secure financial stability and ease the burden of healthcare costs.

Understanding the coverage, benefits, and limitations of different plans, such as the Basic Plan, empowers individuals to make informed decisions about their healthcare and financial well-being.

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