Health insurance

Get a restoration benefit in your health insurance policy with Bajaj Finance

With the increase in health and medical care costs, purchasing an adequate health insurance policy is necessary today. This has caused a growing awareness and demand for health insurance schemes in India. Along with the increased demand for high face amount policies, features that improve coverage, such as catering benefits, have become increasingly popular.

What is the catering benefit in health insurance?

The Restoration Benefit is a facility where the insurance company restores the sum insured of your insurance coverage to its original amount when it is exhausted. So even if you consume the entire sum insured, there is no need to worry. With this feature, you have the advantage of restoring your insured capital, which you can use in the future.

For a more precise understanding, let’s take an example. If the policy has an insured sum of Rs. 5 lakh and the coverage is used on one claim, the restoration benefit will reset the insured total to Rs. 5 lakh if ​​another claim is made within the same insurance year. The restored sum insured can then be used to pay other claims during the same insurance year.

Why is it necessary for health insurance policies to include a restoration benefit?

In view of the increase in healthcare costs, it is quite possible that the entire sum insured will be exhausted in the event of hospitalization, and this is when the “restoration service” of a device. health insurance comes to the rescue. Having a plan with a catering benefit will act as a safety net at that time, providing additional coverage if needed. Therefore, choosing the right choice and including a restoration benefit in your health insurance policy is crucial.

Types of catering services

There are two types of catering alternatives available, and before choosing one, the insured should study the fine print of their health insurance policy:

● Complete exhaustion of the sum insured In this case, the service can only be used once the entire sum insured has been exhausted.

● Partial exhaustion of the insured capital – In this option, the benefit will come into effect even in the event of partial exhaustion of the sum insured.

Who should benefit from the restoration service of the health insurance plan?

The benefits of restoration can help control unanticipated medical costs. Family health insurance plans should include a restoration benefit when you purchase a recovery benefit in your family floating plans, the coverage “floats” among family members. The restore benefit feature is useful in these situations.

The terms and conditions of the catering service are as follows:

  1. Applicable for unrelated diseases – Most health insurance plans that offer the restoration benefit will only allow you to use it if your subsequent claim is for an unrelated illness. This indicates that the second claim should have nothing to do with the first. The restore function will not work if it does.

  2. Full use of the sum insured – The catering provision is available in most plans if the amount covered is exhausted. The restoration function would not apply to the second loss if the sum insured was still open.

  3. Amount of restoration – Most plans allow a full restoration of the insured amount. Some programs can cap this proportion at 50%, while others can claim a restoration of up to 200%. In addition, some plans allow you to increase the amount of restoration by purchasing an add-on.

When choosing the catering service, keep the following aspects in mind:

● The catering service is an optional service that you can take out in addition to your insurance cover.

● It is available at an additional cost when purchasing the basic insurance plan

● The restoration will take place when the total or partial sum insured has been exhausted.

● The returned insured capital cannot be carried over to the following insurance year.

● The catering service will not apply to the first claim made during the insurance year.

● It is not limited to the highest sum insured; it can be used on any sum covered

● The reinstatement benefit restores the total sum insured after you have used it up in a single claim during the term of the policy.

● Only future claims are eligible for catering services.

Make an informed decision when purchasing a health insurance policy for you and your family. Choose the catering benefit in your health insurance policy.

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Posted on: Saturday October 30, 2021, 9:55 am IST