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Health Insurance
Health Insurance claims explained
When medical emergencies strike, the last thing you want to worry about is financial matters. However, many people in India face confusion when choosing between cashless and reimbursement health insurance claims, mainly between choosing cashless or reimbursement modes.
When you are aware of these two pathways, you can make your medical care experience hassle-free.
Cashless claims- no need to pay upfront
Cashless claims work at network hospitals only. In this case, your insurance company pays the hospital directly. This means you don’t need to pay upfront. Instead, just show your insurance card and fill out some forms at the hospital’s insurance desk.
For example, Ramesh needed heart surgery. He went to a network hospital, showed his insurance card, and got treatment. His insurance company paid the hospital directly. As a result, Ramesh only paid for extras like private room charges or consumables.
Reimbursement claims- you pay first
With reimbursement, you can pick any hospital. But you pay all the bills yourself first. Then, collect all receipts and send them to your insurance company. They check your documents and send money back to your bank account for eligible expenses.
For example, Supriya chose her local hospital, which wasn’t on her insurer’s list. Therefore, she paid ₹50,000 for treatment, kept all bills, and sent them to her insurer. About three weeks later, she got ₹45,000 back.
Cashless vs. Reimbursement: A Quick Comparison
| What You Get | Cashless | Reimbursement |
|---|---|---|
| Hospital Choice | Only network hospitals | Any hospital you want |
| Payment Time | Insurance pays hospital | You pay, then get money back |
| Waiting Time | Usually, quicker | Takes more time |
| Paperwork | Less work for you | More forms to fill |
Conclusion
Both claim types have their pros and cons. On one hand, cashless claims mean less worry during emergencies. On the other hand, reimbursement claims give you more hospital choices. So, it might be wise to check your insurer’s network of hospitals. In the end, understanding both methods beforehand helps you focus on getting better, not on paperwork.
Disclaimer: This article is for information purposes 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.
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