What is the difference between Mediclaim & Health Insurance?

3 min read Apr 19, 2024

Given that there is no escape from lifestyle-related ailments, financial protection against medical expenses is not just a choice, but a necessity. And one of the best ways to achieve this is to ensure adequate Health Insurance coverage. But is Mediclaim the best way to ensure this? Or should you go for a Health Insurance plan? What is the difference between the two? Read on to know more.

What is Health Insurance?

Health insurance is financial protection for you and your family members to cover the costs associated with medical emergencies. Here, you pay the premium for a variety of benefits that include daycare procedures, hospitalisation, post-hospitalisation benefits, medication, ambulance charges, preventive care etc.

What is Mediclaim?

Mediclaim is also an insurance protection facility to cover the costs associated with medical emergencies. However, it is a budget-friendly option and has a limited scope when compared to Health Insurance. Mediclaim only covers hospitalisation expenses while all other costs have to be borne by the policy holder.

Mediclaim policy vs Health Insurance

Following are the major differences between Health Insurance and Mediclaim policies in India:

Coverage:

Health Insurance - Offers comprehensive coverage that extends beyond hospitalisation. Includes daycare procedures, pre- and post-hospitalisation expenses, daily hospital cash, OPD expenses etc.

Mediclaim - Provides coverage only for hospitalisation expenses.

Availability of riders:

Health Insurance - Can include add-on covers (riders) such as maternity benefits, critical illness covers, infertility covers, etc.

Mediclaim - Does not provide any add-on or rider benefits.

Distinct plan features

Health Insurance - Basic features remain the same across different insurers.

Mediclaim - Features vary across different insurance providers.

Change in benefits:

Health Insurance - Flexibility to reduce the premium, duration, riders etc.

Mediclaim - No changes in benefits are possible.

Critical illness coverage:

Health Insurance - It can be availed as per the terms of the policy or even through the rider.

Mediclaim - Generally, it does not cover critical illness.

Sum insured limits:

Health Insurance - The sum insured limit is usually higher.

Mediclaim - The limit is usually low, compared to a Health Insurance plan.

Claim process:

Health Insurance - Payouts may differ in the case of Health Insurance.

Mediclaim - You can file the claim until you use the full cover.

Need for Hospitalisation:

Health Insurance - Hospitalisation is not necessary. Even daycare procedures are eligible for benefits.

Mediclaim - Benefits are available only in case of hospitalisation of over 24 hours.

How to choose a plan for medical coverage?

Here are some important points to help you choose the right plan for your medical coverage:

• Opt for adequate sum insured: Determining the right amount of insurance coverage is important. Opting for a higher sum insured will mean paying a higher premium, but it offers better protection against potential risks. Conversely, choosing a lower sum insured might not sufficiently cover your risks.
• Keep it budget friendly: You need to stay within budget while selecting the right medical coverage. A Mediclaim policy comes with limited benefits but is also budget-friendly whereas a Health Insurance policy provides comprehensive coverage against a higher premium amount.
• Buy Health Insurance online: Buying health insurance online is quick and easy. Select an insurance provider that offers this option, so that you can seamlessly buy the policy and make the premium payment online.

Should you buy a Mediclaim policy or Health Insurance?

If you or your family members have frequent health issues that require treatment, then a comprehensive Health Insurance cover may be a better idea. However, if all family members are in sound health and you need the coverage only as a safety-net for emergencies, then you may opt for a Mediclaim policy as it can save you on premium cost.

Also Read: Difference between Fixed Deposit vs Life insurance

Conclusion

Mediclaim policy and Health Insurance offer largely the same benefit, but with different features. While Health Insurance provides you with comprehensive coverage, Mediclaim policy offers hospitalisation benefits. Further, Health Insurance provides riders, which may not be possible with Mediclaim policy.

For the optimum Health Insurance coverage, Axis Bank is the right destination. Select the one that best suits your needs, preferences and budget and apply online.

FAQs

Is a Mediclaim policy the same as Health Insurance?
Mediclaim policy and Health Insurance are different. While Mediclaim insurance policy provides protection only against hospitalisation, Health Insurance provides a comprehensive coverage for your health-related issues.

What is the advantage of Mediclaim?
Mediclaim insurance policy is more affordable as compared to Health Insurance and is ideal for people who may not need frequent hospitalization but need the security of health coverage.

What should I do if I cannot afford Health Insurance?
If you cannot afford Health Insurance, you can go for Mediclaim policy or even opt for a lower sum insured so that you stay protected from sudden medical emergencies.

Is Health Insurance better than Mediclaim?
Health insurance is better than Mediclaim as it provides comprehensive coverage as compared to Mediclaim policy. However, the premium for Health Insurance is usually higher than the Mediclaim policy.

Which diseases are covered under Health Insurance?
Health insurance mostly covers all diseases. However, you should always go through the policy document to check for exclusions, if any, before opting for that particular Health Insurance.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
Disclaimer: Purchase of insurance product by Bank’s customer is purely voluntary and not linked to any other facility from the bank.