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The insurance companies have understood the nerve of customers and are innovating their insurance products as per their needs and demands. One such product, the insurance companies have designed is ‘hospital cash insurance, also called hospicash insurance for the benefit of customers.

Under hospicash cover, if during the policy term, the bodily injury of the insured person is not cured and due to this, the person has to be hospitalized as a patient, then the amount as mentioned in the policy schedule or certificate of insurance will be given to the patient.

This scheme can be taken along with health insurance or separately. Hospital cash policy brings down expenses during treatment, as it covers some of the expenses which are not covered by health insurance or mediclaim.

Apart from this, in mediclaim, you choose the sum insured, but in the hospital cash policy, you have to choose how much coverage you want per day.

The amount received under this insurance has nothing to do with the cost of treatment. This amount can be used to buy goods for tests or operations. It also includes loss of income during hospitalization.

Apart from reducing the burden of medical expenses, the hospital cash plan also provides tax exemption under Section 80D of the Income Tax Act, 1961.

During hospitalization, the insurance company starts with paying a minimum of Rs 500 to the insured, while the maximum depends on the premium you pay.

If an insured is admitted to ICU, then he gets more benefit under hospital cash insurance. Most companies double the amount they get on a daily basis. However, depending on the policy it can go up to five times.

In hospital cash insurance, claims are available only on the basis of the number of days of hospitalization. Under this, a maximum claim of Rs 10000 is available daily. The claim is received for staying admitted for a maximum of 30-45 days.