Reasons to opt for cashless hospitalisation


29 Sep 2022

While a good health insurance plan can offer numerous facilities and benefits, one important facility you should look for is cashless hospitalisation.

The onset of a serious illness or a medical emergency is always a testing time for affected individuals and their family members. Once you recover from the initial shock and the disbelief, the reality takes over with issues like treatment costs, hospitalisation, etc.

However, you don’t have to worry about the financial aspects if you have a health insurance plan with a cashless hospitalisation facility.

Cashless hospitalisation

Cashless hospitalisation is a facility provided by many health insurance plans to their policyholders. Under this facility, the policyholders can avail of hospital services at any of their health plan’s partner hospitals without worrying about making the full payment.

Instead, the insurer will pay a significant portion of the hospital expenses directly to the hospital as per the health insurance contract.

How can a policyholder avail cashless hospitalisation?

The policyholders can avail of cashless hospitalisation benefits under two situations.

Planned hospitalisation

Planned hospitalisation is when you know beforehand about your impending hospitalisation in the next few days. You need to submit an application to your insurer requesting cashless service.

Emergency hospitalisation

If you’re admitted to any of your insurer’s partner hospitals in an emergency, you need to inform the insurer about the hospitalisation as early as possible.

In both cases, a third-party administrator (TPA) appointed by the insurer will assess your application and approve the cashless hospitalisation in the network hospital of your choice.

Benefits of cashless health insurance plans

• Reduces financial burden

Expenses should be the last thing on your mind while you face a sudden onslaught of serious illness or any medical emergency. But, quality healthcare in private hospitals is quite expensive. Even a short hospitalisation period in these hospitals can put a serious dent in your pocket.

However, you don’t have to worry about arranging funds if you have a cashless health insurance cover.

• Better medical facilities

Most insurers include quality hospitals in their partner network. You can avail of top-class cashless hospitalisation facilities in any of these partner hospitals of your insurer. Therefore, you don’t have to go look for a discount or budget options during a medical emergency.

• Health coverage while travelling

It is possible to face a healthcare emergency in an unfamiliar place while travelling. However, you don’t have to worry if you own cashless health insurance coverage. All you need is to find out the nearest network hospital of your insurer. You can avail yourself of the usual benefits covered under your insurance at that hospital.

• Favourable IRDAI guidelines

According to an IRDAI circular named “Standards and Benchmarks for the Hospitals in the Provider Network” dated 20th July 2022, health insurance providers are now empowered to empanel network providers who meet the standards and benchmark criteria as specified by their respective boards. This new guideline will help insurers to increase the scope of their network of cashless benefits. It will, in turn, empower the policyholders to avail of the best nearby medical facilities.

The best thing about cashless health insurance plans is that you start receiving the coverage benefits during the hospitalisation period itself. So, you're spared of the cumbersome process of raising the claim afterwards. At Kotak health insurance page, you can find several health insurance plans that offer cashless insurance benefits.  Choose one of the health plans to secure the health of your family and also have peace of mind.

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.