Can I Take Multiple Health Insurance Policies?

Yes. You can have more than one health insurance policy. In fact, many working couples having dual health insurance policies if employers provide medical insurance for their employees and their spouses. While you can have multiple health insurance policies for various reasons, it is important to remember that you do not get double benefits. In simpler terms, you will not get reimbursed for the same medical cost twice. Remember, any health insurance policy will never pay the hospital or the doctor more than 100 percent of the cost of the treatment. However, having multiple policies can benefit you in several other ways. Here is a quick look.

The cost of medical treatment is rising every year. People are looking for higher sum assured. While insurers calculate the sum assured based on certain factors, there is a ceiling beyond which they cannot increase it. Hence, people start looking at purchasing multiple policies.

How do multiple health insurance policies work?

If you have multiple health insurance policies, then you must ensure that you disclose your existing health covers while buying a new policy. This is because there is a contribution clause in most policies that require the insured to be transparent about all policies before making a claim. In recent years, the contribution clause has gone through some changes. Let’s look at what the clause states and the changes made thereafter.

According to the contribution clause, if a policyholder has more than one policy, and he files a claim, then all policies contribute in equal proportion to the sum insured. For example, let’s say that you have two policies for ₹2 lakh and ₹4 lakh and file a claim of ₹50000. Based on the contribution clause, the ₹2 lakh policy will contribute ₹16,666 while the ₹4 lakh policy will contribute ₹33,333.

According to the changes in the contribution clause, the insured person can approach any insurer first based on his requirements. It is important to talk to the insurer beforehand to avoid claim rejection in the future. Also, when it comes to insurance, honesty is the best policy. It is prudent to inform your insurer about any existing policies for a hassle-free claim experience.

Here are some points that you must keep in mind if you are planning to opt for more than one health insurance policies:

• Ensure that you read the fine print of all plans that offer coverage. Purchase them only if they are financially beneficial.
• Talk to the insurers before buying the policy to understand their claim settlement process for policyholders with multiple policies.
• Remember, multiple policies mean multiple premiums too. Calculate your total premium liability and ensure that you can continue the policies.
• Choose add-ons carefully. Assess your requirements and create a set of health insurance policies that can offer maximum financial protection during medical exigencies.

Benefits of Multiple Health Policies

1. Comprehensive and continued coverage

Most multiple policies are availed by individuals who are covered by basic healthcare by the employer. Opting for a second, independent health insurance plan ensures that you get more comprehensive coverage. Generally, employer healthcare plans are limited in coverage and do not cover some basic features like daycare expenses, critical illness, etc. You can bridge that gap by buying another comprehensive plan. 

Also, the employer coverage is applicable only until you are employed with them. If you wish to resign, you will be left without a medical cover. Alternatively, if you retire from the services, you cease to be covered under the employer plan, and the other plans will be extremely costly due to your age. Therefore, it is beneficial to have multiple health policies, and buy the additional plan at an early age.

2. Protects against the rejection of claims

A policyholder’s nightmare is filing a claim only to find it rejected by the insurer. Imagine having to foot the enormous hospital bills without any reimbursement from the insurance company! While the reasons for rejection can be many, having multiple policies allows you to file the claim with multiple insurers. This increases the chances of the claim being accepted. Hence, it protects you against claim rejections to a certain degree.

3.  Cover for critical illnesses

A regular health insurance policy might not cover critical illnesses. While many insurers offer add-ons or riders to help get covered for such illnesses, it increases the premium amount too. Many people opt for a regular insurance policy for basic medical costs and a separate critical illness policy to save on the premium amount.

Summing Up

As life continues to grow faster and more stressful, an increasing number of illnesses and lifestyle ailments are threatening our health. Also, with medical inflation increasing at a rate of around 15 percent, treatment costs are rising exponentially too. Hence, it is important to have comprehensive health insurance cover to manage these costs. Most employed professionals usually have a health insurance policy provided by the employer and tend to be satisfied with it without understanding the extent of the cover. Ensure that you constantly assess the efficiency of you existing policy and either make it comprehensive or buy another medical insurance policy from a reliable provider like Tata AIG to avail maximum benefits. Stay safe, stay protected.