Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs

SUPPORT

Menu  
Apply Now

Tata Capital > Blog > Wealth Services > The Difference Between Mediclaim and Health Insurance: Which One Should You Choose?

Wealth Services

The Difference Between Mediclaim and Health Insurance: Which One Should You Choose?

The Difference Between Mediclaim and Health Insurance: Which One Should You Choose?

With medical inflation rising by the day, it’s important to invest in health insurance or mediclaim to safeguard your health and financial wellbeing. However, many people use the two terms interchangeably, assuming them to be the same.

While both health insurance and mediclaim provide coverage for medical expenses, they are entirely different in terms of scope and features.

In this article, we’ll explore the key difference between mediclaim and health insurance so you can make the right choice.

What is Health Insurance?

Health insurance provides coverage for medical expenses when you fall ill or need treatment. It offers a financial safety net, ensuring you get good-quality medical care whenever you need it without worrying about the huge bills.

Health insurance typically covers the costs of hospitalisation, doctor consultations, surgeries, etc., depending on the policy. Some plans also provide coverage for daycare procedures, ambulance charges, maternity expenses, critical illness treatment, and more. These plans provide better coverage than mediclaim policies, making them more expensive.

With health insurance, you can either make a cashless or reimbursement claim, depending on the policy terms.

What is Mediclaim?

Mediclaim is a type of insurance that specifically covers hospitalisation costs. For example, suppose you’re admitted to a hospital due to an illness or accident. In that case, your mediclaim policy will take care of expenses like room charges, doctor’s fees, ICU costs, and nursing care up to the sum insured.

Unlike comprehensive health insurance plans, mediclaim only focuses on hospitalisation. This means it’ll not provide coverage for outpatient treatments or pre- and post-hospitalisation expenses.

This makes it an affordable option if you’re looking for basic financial protection against sudden medical emergencies.

Mediclaim vs Health Insurance

Here are the key health insurance and mediclaim differences:

FactorMediclaimHealth insurance
CoverageA mediclaim policy only covers hospitalisation expenses in case of an illness or accident.A health insurance policy provides broader coverage, including hospitalisation, outpatient treatments, pre- and post-hospitalisation expenses, daycare treatments, and more.
Add-onsIt lacks flexibility and does not offer any add-on coverage options.It offers various add-ons like critical illness cover, maternity benefits, personal accident cover, disability, etc.
Critical illness benefitsIt does not provide dedicated coverage for expenses for critical illness treatment.It provides coverage for a wide range of critical illnesses like cancer, kidney failure, heart disease, etc.
Hospitalisation requirementHospitalisation is mandatory to make a claim, as expenses are covered only if you are admitted to a hospital.Hospitalisation is not always necessary as the policy covers certain treatments and procedures without hospitalisation.
Sum insuredTypically has a low sum insured of up to Rs. 5 lakhs.Offers higher coverage options, often starting from Rs. 2.5 lakhs up to Rs. 1 crore or more.
AffordabilityMore affordable due to limited coverage.Comes with high premiums but provides comprehensive financial protection.

Should You Buy Health Insurance or Mediclaim?

Both mediclaim and health insurance safeguard your financial wellbeing in case of medical emergencies. However, to select the best option between the two, you must consider the following factors:

1. Budget

If you’re looking to cover basic hospitalisation expenses at a low cost, mediclaim is the more affordable option. However, if you have a higher budget for comprehensive medical coverage, health insurance will be more suitable.

2. Coverage requirements

Think about what kind of protection you need. If you only want coverage for hospitalisation due to illness or accidents, mediclaim will suffice. But if you want coverage for OPD visits, critical illnesses, daycare procedures, and pre and post-hospitalisation expenses, health insurance will be better.

3. Sum insured

If a low coverage of up to Rs. 5 lakhs will be enough for you, opt for mediclaim. But if you want more comprehensive financial coverage, buy health insurance.

Wrapping Up

Both mediclaim and health insurance serve different purposes, so choosing the right one depends on your budget and medical needs. Compare different plans with Tata Capital Wealth to make the right choice. Get expert guidance and tailored solutions to ensure complete financial protection for you and your family.

Build Your Wealth with Expert Guidance from Tata Capital!

Apply now
Popular Searches
aif full form pms vs mutual fund bnpl meaning aif taxation debt investment options debt syndication perpetual bond unlisted equity shares meaning gold etf vs gold bond plot plus construction loan
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
More Tools
Our Subsidiaries
Our Private Equity Funds

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.