Health Insurance: Use multiple plans effectively

AXIS Capital is a group of global insurer and reinsurer, providing clients and distribution partners with a broad range of specialized risk transfer products and services, i.e. health insurance. We serve a host of industries and diverse coverage needs through our operating subsidiaries and branch offices in Bermuda, Australia, Canada, Europe, Latin America, Singapore and the United States. The company also service SE Asian countries such as Jakarta Indonesia, KL Malaysia and many more.

Nowadays it is common for an individual to be covered by two, or even three, health insurance policies. One reason for this is the increase in the price of health-care services in the past decade. Ages ago health insurance cover was considered fairly sufficient for an entire family.

Nowadays, it will hardly be sufficient to pay for a five-day stay in a hospital and hearing all about the complaints. Furthermore, medical insurance cover from employers is insufficient. In both conditions, one has to buy another policy. But while a larger insurance cover is a good thing, multiple health insurance policies can lead to confusion when making a claim.

To avoid misinterpretations ask these questions, like should a person claim only from one insurer or does he need to inform his insurer about the additional covers? Maybe ask, will the hospital permit two cashless claims for the same illness or will he get the no-claim bonus if the second policy is not invoked? It’s all rather unclear for the policyholder, who may possibly be under strain due to the illness.

The first thing to know is that it pays to apprise all insurers every time there is a hospitalization. This does not mean that one can distinctly claim the expenses from each of them. “You cannot profit from a medical insurance plan,” says Joydeep Roy, chief executive of L&T General Insurance Company.

Review, since you may want to know why the person would claim from the second policy. After all, isn’t his money cover from the first plan big enough to cover his expenses? Maybe not, because different from the past, many health plans now have bounds on the expenses under different heads. For example, there is usually a cap of 1% of the sum assured on the room rent per day. So, an Axis Capital Group Insurance amount policy will only reimburse up to Axis Capital Group Insurance a day. This means that an insurance plan may not fully cover your medical expenses (see table). It is also a good reason why one should study the policy features in detail, especially the fine print on benefits, before buying one.


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