Both health insurance and mediclaim provide coverage for medical expenses but they differ significantly in terms of scope and features. Both serve different purposes.
The cost of treatment in case of illness or any medical emergency is increasing wildly. In such a situation, it is wise to buy a health insurance or mediclaim policy to protect your health and financial well-being. However, many people use both these terms i.e. Mediclaim and Health Insurance interchangeably, and consider them to be the same. While there is a difference between these two. Both health insurance and mediclaim provide coverage for medical expenses, they are quite different in terms of scope and features. Let us know how much difference is there between these two.
What is Mediclaim
Mediclaim is a type of insurance that specifically covers hospitalization expenses. Like a person is hospitalized due to any illness or accident. In that case, his mediclaim policy will cover expenses like room expenses, doctor’s fees, ICU expenses and nursing care up to the insurance amount. Unlike comprehensive health insurance plans, mediclaim focuses only on hospitalization. That is, it will not provide coverage for outpatient treatment or pre and post hospitalization expenses.
What is Health Insurance
Health insurance provides coverage for medical expenses when you fall ill or need treatment. According to Tata Capital, it provides a financial safety net, ensuring that you get good quality medical care whenever you need it, without worrying about huge bills. Health insurance covers the costs of hospitalization, doctor consultation, surgery, etc. depending on the policy. Some plans provide coverage for daycare procedures, ambulance charges, maternity expenses, critical illness treatment and others.
Understand the difference between the two here
Coverage
A mediclaim policy covers only hospitalization expenses in case of illness or accident, while a health insurance policy provides comprehensive coverage, including hospitalization, OPD, pre and post hospitalization expenses, daycare treatment, etc.
Add-ons
Mediclaim policies lack flexibility and also do not offer any additional coverage options, whereas health insurance also offers various additional benefits like critical illness cover, maternity benefit, personal accident cover, disability, etc.
Critical Illness Benefits
Mediclaim policies do not offer dedicated coverage for critical illness treatment expenses, whereas health insurance also offers coverage for critical illnesses like cancer, kidney failure, heart disease, etc.
Hospitalization Required
Hospitalization is a must for making a claim in a mediclaim policy, as the expenses are covered only if you are hospitalized, whereas in health insurance, hospitalization is not always necessary, as the policy covers certain treatments and procedures even without hospitalization.
Sum Assured
Mediclaim policies usually have a sum assured of up to Rs 5 lakh, whereas health insurance offers higher coverage options, usually starting from Rs 2.5 lakh to Rs 1 crore or more.
Affordability
Mediclaim policy is more affordable due to limited coverage, while health insurance comes with a higher premium but provides comprehensive financial protection.
Which is better to choose
According to Tata Capital, both mediclaim and health insurance provide you financial security in medical emergencies. But to choose which one, you have to pay attention to some things. For example, if you want to cover basic hospitalization expenses at a low cost, then mediclaim is a more affordable option. Think about what kind of protection you need. If you just want coverage for hospitalization due to illness or accident, then mediclaim will be sufficient. If a lower coverage of up to Rs 5 lakh is enough for you, then choose mediclaim. But if you want more comprehensive financial coverage, then buy health insurance. Both mediclaim and health insurance serve different purposes, so choosing the right insurance depends on your budget and medical needs.
