November 28, 2023

5 Features And Benefits Of Cashless Health Insurance

Having health insurance is essential for protecting your finances in case of a medical emergency. The cashless facility is another crucial component that every online health insurance plan needs to have. This is due to the fact that when using a health insurance claim, a cashless option makes it easier to pay for treatment.

Instead of the insured having to pay cash, the hospital claim is settled directly between the hospital and the insurance company in a cashless facility, thus offering several health insurance benefits. As there is no need to make arrangements for funds that would be returned later, it helps to lessen the financial strain on the insured at the time of discharge. In the event that the treatment is received at one of the network hospitals that the insurance provider has identified, getting the proper care is made easier because the insurance provider will handle the payments directly. *

Comparison of reimbursement claims and cashless claims

As you are already aware, the policyholder pays a premium to the health insurance provider to cover the costs of the family members whose health is covered by the policy. You have two options for receiving payment for medical expenses: cashless payment or reimbursement claims. Here is how they differ from one another:

  • Cashless

When receiving treatment at a hospital, the policyholder is not required to make an advance payment under the online health insurance policy’s cashless provision. Without the need for any cash payments from the policyholder, the insurance company and the hospital settle the costs in this situation. *

  • Reimbursement claims

When filing a claim for reimbursement, the policyholder must first pay the hospital in cash and then submit all necessary paperwork to the insurance company to request a reimbursement. As a result, the policyholder pays the hospital first before requesting reimbursement from the insurance provider. Usually, the reimbursement option is utilised to settle claims if the treatment was not received in one of the network hospitals. *

How to apply for cashless insurance

  • From the list the insurance company provides, pick a network hospital.
  • Fill out the pre-authorisation form at the insurance company’s desk in the hospital to notify the insurance provider.
  • If there is an emergency, you should notify the insurance within 24 hours of admission; if hospitalisation is anticipated, you should notify the insurer 48 hours in advance.
  • Send the properly completed and signed form, along with any other required paperwork, such as a copy of your ID, your insurance policy, and any relevant medical records (such as a doctor’s prescription), to the insurance company representative.

Advantages of cashless health insurance purchase

  • With cashless health insurance, you can be admitted to any network hospital and receive treatment right away. The insurance representative must be notified as soon as possible, after which the entire process becomes quite convenient. *
  • A number of quality criteria must be passed in order for a hospital to become a network hospital, helping to guarantee that the policyholder will receive top-notch care at a reputable facility. As a result, you obtain modern therapy without paying for it and expert guidance from licensed medical professionals.
  • Under Section 80D of the Income Tax Act, the premium for health insurance is excluded from taxes. Therefore, in addition to gaining peace of mind, you also get to lower your tax obligations. **
  • Pre- and post-hospitalisation charges, such as those for diagnosis, treatment, medical costs, doctor visits, etc., are covered up to the cap set by your chosen insurance policy. Cashless insurance also covers specialised treatments, including dialysis, chemotherapy, surgical costs, lodging costs (per policy), and other daycare costs. *

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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