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Hospital Cash Insurance

Health Insurance Guidelines

The hospital cash insurance is an added benefit that can be availed under your health insurance policy. Under this add-on, the insured can receive an amount on a daily basis for the entire period of time during which the person remains hospitalized.

A policyholder can buy a hospital daily cash allowance as an optional coverage to meet the various expenses during the period of hospitalization of the insured. This specific amount received as hospital cash can be used to meet the extra daily expense, which is not covered under your regular health plan. In this post, we are discussing hospital cash policy and daily hospital cash benefits in detail.

What is Hospital Cash Insurance?

As discussed above, Hospital Cash Insurance is an add-on policy of health insurance that allows the insured to avail a fixed sum of money for each of the days that the insured stays in hospital or during hospitalization. The amount received under the daily hospital cash is a fixed amount that the insurer pays to the policyholder to meet the extra expenses during the phase of hospitalization.

To avail the benefits of daily cash allowance, the policyholder is required to buy an additional cover of daily hospital cash along with their basic health plan. However, some policies might offer this cover as an inbuilt part of their regular health plan. Also, it is important to note that the daily cash allowance benefit is doubled if the policyholder is admitted in the ICU.

What are the benefits of Daily Hospital Cash Insurance?

Below are some of the benefits of daily hospital cash insurance:

  • The daily hospital cash benefit helps the insured to pay for the costs incurred during hospitalization which are not covered under a comprehensive health insurance plan like visiting family member charges, surgical accessories etc.
  • The policyholder receives a fixed amount of the daily hospital cash benefit. And in case the actual cost incurred by the insured is less as compared to the daily limit they receive, they don’t have to give the extra amount back
  • Let’s take an example to understand the scenario. Suppose the cover limit offered by the insurer under the hospital cash plan is INR 800. Now, let’s say that the actual expense the insured incurred is INR 500. In that case, the policyholder will still receive the fixed amount of INR 800
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Top Hospital Cash Insurance Plans in India

Hospital Cash Insurance  Amount (in INR) Number of days (cover)
Future Generali Hospicash Plan  INR 500 - INR 9000 30, 60, 90, and 180 days
Cholamandalam Hospital Cash Insurance Plan INR 1000 - INR 3000 20 - 25 days
Universal Sompo Health Insurance 0.25% of the Sum Insured or INR 2000 N/A
SBI Hospital Daily Cash Insurance Policy Sickness: INR 500 to INR 2000
Accident: INR 1000 to INR 4000
30 to 60 days
Bajaj Allianz Hospital Cash Benefit Policy INR 500 to INR 2500 30 days & 60 days
Iffco Tokio Hospital Daily Cash Policy INR 250 to INR 5000 15, 30, 60, 90, & 180 days
Niva Bupa (Formerly known as Max Bupa) Health Assurance Plan INR 1000 to INR 4000 up to 45 days
Raheja QBE Hospital Daily Cash- Group Up to INR 15,000 7-15 days
Tata AIG Health Insurance INR 500 onwards up to 180 days

Coverage offered under Hospital Cash Insurance

Though most of your medical expenses are taken care of by your health insurance policy during hospitalization, some of the costs don’t come under the purview of the insurance plan. With hospital cash insurance, you can cover some of those excluded costs.

The daily hospital cash benefit is an add-on cover that you can avail with your regular health insurance policy. The best part is you do not need to submit any supporting documents to avail this hospital cash amount if you are hospitalized for more than 24 hours. So, during the period that an insured person is hospitalized, the insurer pays a lump sum amount on a daily basis, which can be used as per the requirement of the policyholder.

Limit of Coverage of Daily Hospital Cash Benefit

The daily cash allowance that an insured is eligible for as part of the hospital cash insurance add-on can range from INR 100 to INR 10,000. However, it will definitely vary depending on the insurance company. So, you are required to check your policy wording while buying the plan to make sure the exact amount that the insured can receive under this add-on.

Some policies may offer this benefit as an inbuilt option and in that case the insured might get the coverage in terms of a certain percentage of the sum insured. For instance, the hospital cash benefit can be 1% of your policy sum insured under some policies offered by certain insurance companies.

Tenure of Hospital Cash Benefits

Generally, the tenure of a daily hospital cash benefit ranges between 15 to 45 days. However, it varies from insurer to insurer. So, one must check the coverage tenure at the time of purchasing a policy. Further, if the insured gets hospitalized for 10 days and suppose the daily cash benefit that the person is eligible for during the policy period is 30 days, he/she is eligible to receive the amount for the entire days of policy limit rather than just the days of hospitalization.

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Frequently Asked Questions

It is an added coverage amount wherein you get a fixed allowance for each day of hospitalization for a specific number of days as mentioned in the policy document. The amount can be received even if the insured is admitted in ICU.

You can buy hospital cash insurance at the same age limit as mentioned in your health insurance policy for your base plan.

The amount can be used for various expenses that an insured incurs during hospital stay for buying medicines, to take care of the expenses of the attendant of the insured etc. as well as for other personal expenses. This amount can be used by the policyholder for miscellaneous purposes.

Yes, there are several health insurance providers who allow daily hospital cash benefits as an inbuilt feature of the plan or as an add-on cover.

The daily hospital cash can range from a minimum of INR 100 to a maximum of INR 10,000. But it depends on the health insurance company and the chosen health plan.

* Rs. 245/month is the starting price for a 5 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*! Rs. 334/month is the starting price for a 10 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*@ Rs. 12/day is the starting price for a 5 lac family health insurance for an 25-year-old male and 22-year-old female, with no pre-existing diseases.
*# Rs. 12/day is the starting price for a 5 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*$ Rs. 600/month is the starting price for a 20 lac health insurance for an 25-year-old male, with no pre-existing diseases.
*^ Rs. 12/day is the starting price for a health insurance that covers coronavirus for an 25-year-old male, with no pre-existing diseases.