What is the Difference between Health Insurance and Medical Insurance?

Many times, People use the terms Health Insurance and Medical Insurance interchangeably. It is because they do not know that both terms hold significant differences. Let us try and understand the difference between Health Insurance and Medical Insurance.

Health Insurance

Health Insurance is a type of insurance that covers the monetary expenses of an insurer in case of her/him getting sick, injured or hospitalized. Having a Health Insurance ensures that the insurance company bears the entire or partial risk or cost, as per the policy, if an when the insurer meets with an illness or accident and requires medical and surgical procedures.

In many cases, insurance companies have tie-ups with hospitals that enable direct payment to the hospital. In case there is no tie-up, the insurance company reimburses the insurer for the expenses.

Health insurance not only covers your medical expenses but also compensates the income earners for the loss in working time arising out of illness and accidents.

Health Insurance encompasses cashless payment in case of a tie-up hospital, pre and post-hospitalization costs, conveyance or ambulance costs, Medical tests and checkups.

Medical Insurance

Medical Insurance is a type of insurance that compensates for hospital expenses related only to the treatment of a specified accident or injury. Medical Insurance is a part of Health Insurance.

Health Insurance Vs Medical Insurance

  1. Health Insurance is a comprehensive plan that covers pre and post-hospitalization charges, transportation or ambulance costs, medical tests and check-ups whereas Medical Insurance covers only the hospital charges associated with the accident.
  2. Health Insurance compensates for the insurer’s loss in income as compared to the Medical Insurance which does not.
  3. For claiming Health Insurance benefits no hospital bills are required to be submitted to the insurance company. Hospital bills, receipts and medical reports are required to assert medical insurance benefits.
  4. Health Insurance policy covers add-ons for the medical treatment of diabetes, hypertension and also maternity and daycare. Medical Insurance does not provide for any add-ons.
  5. In Mediclaim, one can claim under the policy until the insured has exhausted the sum assured limit. In health insurance, if the insured dies or gets disabled then a lump sum amount would be paid and also the policy would expire.
  6. The limit of the sum assured is comparatively lesser for medical insurance than health insurance.
  7. Health insurance policies are flexible with coverage options, duration, the sum assured, add-ons, etc at the choice of the insured.

 

The premium payment in both the categories of insurance depends upon certain variables like the age of the insured, the sum assured geographical areas, etc. If you are young and fit with no medical history then it is advisable to take a Medical Insurance over health insurance. Also, it would lead to lower premium payments. As a cheap option for medical emergencies, mediclaim is a reliable option to choose from. If you are trying to find a comprehensive plan with increased coverage options then health insurance is for you.

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