One takes health insurance policy to get the cover for hospitalization during the treatment of the ailment. But many a times it is seen that some of the hospitalization expenses are not reimbursed by the health insurer. The inadmissible expenses could be surgical accessories, X-ray charges, among others. And in that case if you do not have the privilege of Daily Hospital Cash (DHC) plan, then you will have to pay from your pocket. So, one must know what this concept is, how does it work, benefits and things to keep in mind while taking DHC plan.You can check below for the explanation of the same.
Daily Hospital Cash Plan
The daily hospital cash plan is a type of health plan that offers a fixed amount to you each day during the hospitalization period. This is a fixed amount set at the time of the issuance of the health insurance policy. Doesn't matter how much the actual expenses are, the insurer will keep paying you a fixed amount each day. For example- If the amount of your DHC plan is Rs 1,500 per day of hospitalization, you will be paid Rs 1,500 each day even if the daily expenses may be Rs 1,000 or Rs 2,000.
How Does DHC Plan Work?
A DHC plan can be called by names such as Daily Hospital Cash, Hospital Cash Insurance or Hospital Cash. But all these work in the same manner. The operation of these plans are different from a mediclaim policy, which allows reimbursement of the hospital bill. While DHC plan pays the insured based on the days of hospitalization irrespective of the actual amount of expenses that may have incurred on doctor's fee, room rent, test fees, etc. Also, you can make claim under mediclaim and DHC simultaneously.
The coverage of the DHC plan is dependent on the daily allowance you choose while taking the plan. Daily cash allowance can range from Rs 500-3,000. In case of insured being admitted in the hospital, the daily cash allowance tends to increase two-fold. In addition, some DHC plans offer additional multiple of the cash allowance in the event of insured undergoing a surgery.
- DHC plan comes to the rescue in the event of no cover for certain hospitalization expenses by the mediclaim, such as X-ray charges, surgical accessories, as well as expenses incurred by the accompanying family members. With DHC plan, you can get a fixed sum of money each day to pay your hospital bills or compensate for the loss of income during the time you get hospitalized.
- With DHC plan in place, you can keep intact your no claim bonus (NCB) on the health insurance policy. On a minor hospitalization, the bills may not be particularly high. In that case, you can use daily hospital cash to pay off the bills without having to make claim on your health insurance, thus saving NCB from being utilized. NCB means the discount on premium payable to the policyholder if they do not make a claim in a particular year. The amount of discount can go upto 50% on no claim for five subsequent years.
Terms & Conditions
There is a waiting period clause in the DHC plan that you have to contend with. But, the waiting period here apply for shorter tenures. One more condition is that the hospitalization must be for at least 24 hours to get the daily hospital cash allowance. So, day care procedures, which take below 24 hours of hospitalization, are not covered under DHC plan. There is also a limit on the number of days for which the cash allowance is payable. It can be either 30, 60 or 90 days.
Now that you have gained information regarding daily hospital cash plan, you can take a right call on the same. But make sure you take it as a supplement plan to the health insurance policy and not the replacement of the latter. It should only be added to the health insurance policy to get the cover for some little expenses during the hospitalization as these may not be covered by the health insurance plan.