Today, many individuals and families strive to have various healthcare insurance coverages. With numerous insurance companies offering a wide range of health insurance plans, people often worry about whether they can opt for health insurance policies from multiple companies. The question that frequently arises: Can one opt for health insurance from several companies? The answer is a resounding yes. In fact, one can purchase policies from different insurers, and at the time of a claim, choose the policy based on the coverage it provides.
There can be several reasons for choosing health insurance from several companies, and the main one is that the person may find more comprehensive coverage offered by different insurance firms. For instance, one insurer might offer a rich package of services for certain diseases, whereas another may offer more reasonable prices for insurance services. In this scenario, it is possible for the client to secure better coverage or protection than what is offered by a single insurance policy.
Another reason could be that an existing policy may not provide sufficient coverage in terms of the sum insured or specific illnesses covered. Thus, there may be a need to buy an additional policy to ensure all these concerns are adequately addressed.
There can be several reasons why one might opt for policies from different companies. The Insurance Regulatory Development Authority of India (IRDAI) allows individuals to have different policies and also raise claims through different insurers. The only condition is that the insured is liable to (must) inform all insurers about the health insurance policies that they hold.
In a nutshell, yes, anyone has the liberty to obtain health insurance from several companies and enjoys the added privilege of full coverage and the flexibility of choosing a tailored package. However, one must consider the potential drawbacks— fewer alternatives may often be better, and the disadvantages, along with possible complications, must be carefully evaluated. Given these challenges, it is wise to seek professional advice from healthcare providers and insurance consultants to effectively manage multiple health insurance policies.How to claim health insurance from two policies from different insurance companies
Currently, in India, it is legal to obtain health insurance from two insurance providers at the same time. This is the best because it offers complete coverage and reduces financial strain in case of high medical expenses. However, policyholders who intend to claim from two separate policies need to know the rules and regulations of the insurers and be honest with them to avoid issues later.When claiming two policies from different insurance companies, policyholders must follow these steps:
- Timely intimation:
The first procedure is to notify both insurance companies regarding the hospitalisation and the claim needed. Every insurance company has a claim reporting procedure, and generally, one has to submit documents such as hospital receipts, doctor’s prescriptions, and identification proof. - Coordinate with healthcare providers:
Private healthcare providers must understand that there are multiple insurances and accordingly coordinate with all the insurance companies for billing and claims collection. This would be most useful in that it would prevent any further delay or argument in claim settlement. - Obtain claim forms:
Policyholders are required to access the claim forms from both insurers and complete these forms with the correct details. Incomplete forms or those filled out inaccurately are grounds for denial of claims. - Submit the required documents:
One must remember that apart from the claim forms, the policyholders must submit a set of documents to both insurance companies. It normally involves the cost of hospitalisation, as well as other costs such as bills to be paid, a summary of treatment upon discharge, other diagnostic results, and any prescriptions from the attending physician. Policyholders should keep a photocopy of all documents that they have submitted to the insurance company. - Coordination between insurance companies:
When the policyholders complete the forms and add the required documents, the insurance companies can discuss the claim with the policyholders in detail. The two insurance companies may require some extra details or formalities or documents, and it is necessary to respond to these requirements appropriately to minimise the time for the claim statement. - Claim settlement:
Once the policyholder receives everything and submits all the needed documents, the health insurance companies should pay out the claims. One must remember that as per the choice and documents, one insurance company will pay as per the policy and sum insured, and the balance amount will be settled by the other insurance company. - Maintaining records:
In this way, policyholders have to keep all records of hospitalisation, insurance policies, and documents used and created during the claim process for future use. This can come in handy in the event that there is a conflict or as a result of some later disagreement.
Having two health insurance plans, given the insurance policies of two different companies, allows for many health benefits, but filing claims may be complicated. The claims have to be genuine, and one must ensure they do not request for overpayment or double payment. Both claims need to be genuine and not overlap. For an easy settlement, due process must be followed, and all required documents must be submitted to the insurers. So, ensure you understand both the policies and take a claim in the way that you get maximum benefit.
FAQs
Q1: Don’t employees have rights to group health insurance programs if their employer does?
Health insurance plans may be obtained from one or more companies, although it is advisable not to make claims from employers group health insurance policies whereby one is employed. But if an event like this occurs, you have nothing to worry about. You can always ask the employer’s permission to buy additional policies, provided you are not restricted from doing so by any prohibition rules.
Q2: Can one be taxed for having multiple health insurance policies?
After the Income Tax Act of 1961, Section 80D allowed tax deductions on premiums paid on health insurance plans. However, should the multiple policies be in force, the tax benefits shall be accorded to the policies according to the premiums paid and limits on the policy.
Q3: Do people have to state the existing health insurance policies when buying a new one?
Indeed, this is important because people need to declare any policies they already have while underwriting for a new policy. Failing to do so might result in policies getting cancelled, claims not being settled, or legal troubles. Some insurance-providing firms might also have the provision of slashing premiums or having one comprehensive policy package if one is insured by that company.
Note: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
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