Author: Sidharth Hampanavar

A health insurance plan is not a luxury anymore. Rather, it has become one of the biggest necessities given the rising medical costs and the increasing incidence of illnesses. 

As the need of health insurance is growing, insurance companies are also revolutionizing their policies by introducing newer and innovative coverage benefits. These innovative benefits promise an all-around protection. One such benefit, that is increasingly becoming available in many plans, is global coverage. This coverage removes the geographical barriers in health insurance plans and makes them more relevant.

Let’s understand what global coverage is all about, its importance and why should you opt for the same.

Understanding a global health insurance cover

Global health insurance cover means coverage for treatments availed in international countries. Earlier, health insurance plans covered treatments taken only within India. However, modern day health insurance plans are offering treatments taken anywhere in the world. This is particularly helpful if you are travelling abroad and you suffer from a medical contingency. Global health coverage would cover such contingency and give you coverage for the medical costs incurred.

Global health coverage vis-à-vis international travel insurance 

When it comes to the coverage for medical treatments abroad, another option that pops into mind is the international travel insurance plan which offers similar coverage. However, international medical coverage under travel insurance plans is quite different from the global coverage allowed under health insurance plans. Here are some aspects how –

• Travel plans are available only if you go on an international trip. Health plans, however, have no such conditions
• The coverage duration of travel insurance plans is limited to the trip duration. You can, however, avail of lifelong coverage under health plans with global cover
• Travel plans do not cover domestic treatments but health plans do
• Planned hospitalisation is not covered under travel insurance plans but some health plans do provide coverage for such hospitalisation

Benefits of global health insurance cover

Global health insurance coverage is quite beneficial. Here are some reasons why – 

• Coverage for hospital costs

  Global health coverage becomes applicable if you are hospitalised on an inpatient basis in an international city. The relevant costs incurred are covered under the policy. This includes the charge of the hospital room, the ICU charges (if needed), the fees of the doctors, nursing charges, etc. Thus, by taking care of the hospital costs, which comprise the major part of your medical expenses, global coverage helps you bear the costs of international hospitalisation. 

• Emergency assistance 

  Global coverage ensures financial security in an emergency. If you are in an international country and you suffer from an emergency illness or injury that requires immediate medical attention, you can avail of that attention without worrying about the underlying costs. 

• Access to advanced healthcare

  International treatments use advanced technologies and they can be effective against critical illnesses or major surgeries. Under many health plans, global coverage is allowed for critical illnesses allowing you to get access to advanced healthcare facilities without worrying about their affordability. 

• Tax benefits

  Lastly, health plans with global coverage allow the same tax benefits that normal health insurance plans provide. The premium that you pay is allowed as a deduction under Section 80D up to INR 25,000. If you are aged 60 years or above, the deduction limit increases to INR 50,000. In the case of parents, if you pay the premium for their coverage, you can claim an additional deduction of INR 25,000 or INR 50,000 depending on your parents’ age. 

So, health plans with global coverage makes sense. If you choose the coverage, you can enhance the scope of your policy that goes beyond the Indian borders and avail of coverage worldwide. 

Things to know about global health cover

Though many health insurance plans allow global coverage in their plans, here are some aspects of the coverage that you should know about –

• The coverage can be available either as an inbuilt benefit or as an optional add-on. The inbuilt benefit is usually available under high sum insured levels. In the case of the latter, you would have to pay an additional premium to avail of the coverage.
• Under some plans, the coverage might not be available for treatments taken in USA or Canada
• OPD expenses and pre and post hospitalisation expenses are usually not covered under the plan
• Maternity coverage might be excluded and, if included, it is usually available only under family floater plans
• There might be a co-payment for international coverage 
• There might be a limit on the coverage amount
• Some plans allow only emergency international hospitalisations. Planned hospitalisations are excluded
• Under some plans international coverage is available only for named critical illnesses
• There might be restriction on the tenure up to which international coverage can be availed of 
• Pre-existing illnesses and their complications might not be covered

Buying health insurance with global coverage 

Global health insurance coverage is a valuable addition to your health insurance policy if you travel internationally. It is different from a travel insurance plan and it widens the geographical scope of your policy. So, you can avail of the coverage for enhanced protection. You can either buy a new policy having global coverage or port to one at the time of renewals.

However, when buying, read the coverage terms and conditions so that you know exactly what you are covered for. Also, check the coverage limit. If the plan allows global coverage as an add-on, the additional premium would be low and affordable so that you can add the coverage to the policy.

So, assess your needs and then opt for global health insurance coverage in a health insurance policy.

Health insurance has always played a very important role in everyone’s lives. However, with the outbreak of the pandemic last year, its importance has increased manifolds. Prior to 2020, having health insurance was important, but now the amount of coverage has superseded all other requirements. People have not only understood the need for health insurance, but also having adequate coverage is well understood!

Most people have started re-assessing their health insurance requirement again, especially with the outbreak of the new Covid-19 variant, Omicron. It was discovered in South Africa in November 2021 and is rapidly spreading to all corners of the world. The second wave witnessed many people spending lakhs on hospitalization and oxygen supply out of their own pockets. Are you prepared this time? Learn your lesson from the second wave of the pandemic and review and upgrade your health insurance to cover Omicron covid 19 variant.

What we know about Omicron till 8-Dec-2021:

Since the covid variant, Omicron, is still in its nascent stages, there is limited information on it. The World Health Organisation (WHO) is still researching and new information is emerging every day. The Omicron variant has a greater risk of reinfection because of the number of mutations it can have. Knowing the risk and the medical expenses associated with it, ensure that you have adequate health cover. Answers to the following questions will decide whether you have sufficient cover against the new variant.

What we know thus far includes:

1. Transmissibility 

   As per the latest reports from WHO, there is no clarity on the actual transmissibility power of the Omicron variant. While there has been a surge in cases in places like South Africa after the variant was found, there is no conclusive evidence yet to prove that Omicron gets transmitted at a faster rate than the other variants such as Delta.

2. Severeness

   WHO says that at present, there is no conclusive study to show that Omicron causes more serious infections than the other variants. Though there has been a rise in the number of hospitalisations, it is still too early to say Omicron is causing severe covid infections among the patients. Research is still going on and the severity is yet to be established by virologists!

3. Symptoms

   All the studies done thus far have shown that the symptoms of the Omicron variant are quite like the other known covid symptoms. These include a fever, cough, body ache, headache, weakness, etc. There have been no known new or aggravated symptoms yet that the Omicron patients face.

4. Treatment

   The course of treatment used to treat the older and existing covid patients remains the same. The WHO has not specified any new line of treatment yet, though research is still underway.

5. Recurrence 

   As per the latest report by WHO, there’s a possibility of a recurrence of Covid due to Omicron in patients who have previously had the infection. However, there is limited information on this and WHO is working very closely with experts around the world to get greater clarity on this.

6. Efficacy of vaccines

   Most of the vaccines, including the AstraZeneca and the Pfizer Vaccines, are understood to provide sufficient protection against all the variants of covid. A person who is fully vaccinated is at a lower risk of getting severely infected with the covid virus and this reduces the death risk as well.

This is the data officially available from the WHO. However, there are many rumours doing the rounds that you should stay away from. Governments and authorities around the world are urging people not to panic. Getting vaccinated is a good way to stay protected as well, so ensure you get inoculated if you haven’t done so yet.

Net net, Omicron is expected to be a milder variant of the Covid-19 virus. But given that it is a super spreader, the chances of contracting the virus is high. Hence, it is important to step up your health insurance coverage to the optimum so that you are adequately protected!

Health insurance and Omicron

As stated, Omicron is very new and no one really knows what threat it actually poses. This is why one cannot say with conviction that either a fully-vaccinated person or someone who has recovered from Covid is safe from the variant or not. In such a scenario, it becomes important to take all the necessary precautions. Along with following the Covid safety protocols, you should prioritise getting a good health insurance policy. Health insurance is very important and more so when the threat of the pandemic looms over. Fortunately, all the comprehensive health insurance plans available in India offer a covid protection cover.

Is Omicron covered in your policy?
First, check whether your existing policy covers the Omicron variant. Most of the health indemnity plans cover hospitalisation expenses so they automatically cover covid-19 no matter what the variant is. Since Omicron is nothing but a variant of the covid sars virus, all the complications relating to it are covered under the health insurance plans.

Whether you choose to get a standalone covid protection plan or a comprehensive health insurance plan, you will be assured of getting the coverage you need even if you end up being severely ill with Omicron. Thus all existing health insurance plans cover all hospitalisation expenses due to all infectious diseases including Covid-19 and all its variants, including Omicron. Even covid-specific health insurance plans cover all complications relating to the Omicron variant.

Health insurance cover for Covid 19

The IRDAI has made it compulsory for all the health insurance companies in India to offer a covid 19 cover along with comprehensive health insurance plans. So, if you have a comprehensive plan, whether individual or floater, you will have a covid cover too. There are also standalone covid plans available with every insurance provider. Here are the covers you get under the covid health insurance policies:

1. In-patient care

   In both the first, as well as the second waves, it was seen that a large number of people required hospitalisation due to covid. The health insurance plans offer comprehensive in-patient covers if you need to spend a few days in the hospital due to this disease. The covers include the room rent, the ICU charges, the physicians’ charges, nursing charges, pharmacy expenses, etc.

2. Home health care

   If the doctor prescribes home care due to lack of space in the hospital, or due to mobility issues, you can get compensation for the expenses incurred while recovering from Covid at home. This is available with Covid Specific health insurance plans as well.

3. Consumables cover

   These include the PPE kits, oxygen cylinders, nebulisers, ventilators, masks, gloves, etc.

4. Cashless treatment

   At a critical time when saving one’s life becomes important, thinking about paying the bill and running around to complete the formalities may seem like a daunting task. This is why the cashless treatment facility proves to be highly beneficial.

5. Ambulance cover

   Similarly, getting to the hospital in a fragile state can be difficult, as well as hazardous as you may spread the virus on the way. This is why travelling in a covid ambulance is important. The health insurance plans offer an ambulance cover too which allows you to safely and quickly reach the hospital.

These are the effective ways in which a health insurance plan helps if you or a family member gets affected by the Covid virus, including the newer variants. The covid specific health insurance plans have been extended till September 2022, according to the latest circular.

Questions you need to ask yourself:

A low sum insured might not be sufficient if multiple family members are hospitalised at the same time. Although preliminary reports say that Omicron is not extremely dangerous, pre-existing ailments can make conditions worse.

1. Is your existing health insurance coverage enough?
   To avoid dents on your savings, review your sum insured. Your health insurance plan should have a sum insured sufficient enough to cover the costs of hospitalisation and after-effects or post-treatment complications also. It should be enough to meet all the demands of the treatment. If the sum insured in your existing plan is not enough, invest in an additional comprehensive cover to avoid paying out of your own pocket.

   Tip: Good health insurance coverage reduces the out-of-pocket expenses of individuals. The current out-of-pocket expenses of India is currently at 70%. (Source: New India Express)

2. Is your family floater plan enough?
   We are aware that Covid-19 is an infectious disease that could lead to multiple people being hospitalised at the same time. So, if you have a family floater health insurance plan, you need to evaluate if the same is enough to provide adequate coverage to all.

   You can have a separate policy for elderly parents. In case your family floater has a low sum insured you can have a super top-up plan to cover the costs in case of simultaneous hospitalizations or prolonged complications.

   Tip: You can choose to step up your health insurance coverage with a super top-up health insurance cover with the deductible as your base plan.

3. Does your plan have co-payment and sub-limits?

   If your existing plan has a co-payment, make sure it is the minimum otherwise upgrade even if you have to pay a higher premium. Similarly, if it has sub-limits, you can opt to port the same to plan without any sub-limits.

   It is better to be prepared for a medical emergency than to deplete your savings for treatment purposes.

4. Do you need a Covid-specific plan?
   These are plans specifically covering covid-19 treatment costs and pre and post-hospitalization costs. If your existing plan has a low sum insured, you can urgently purchase a covid specific plan for additional coverage as there is no waiting period and it covers you from day 1.

   Also, you can also invest in a covid-specific plan if you don’t already have a health plan and you are at risk of getting a covid infection. There are two types of covid-specific plans: 

• Corona Kavach Plan:
  It is a single premium indemnity plan covering both individuals and families for periods of 3.5 months, 6.5 months and 9.5 months. It covers homecare treatment costs, pre and post-hospitalization costs, and ambulance costs.
• Corona Rakshak
  It is a fixed benefit plan only for individuals and pays the lump-sum amount of the sum insured. It does not cover the costs of home care and hospitalisation of 72 hrs minimum is required to get a claim.

To sum it up, important things to keep in mind while buying a covid health insurance plan or upgrading your existing health plan are the sum insured, it should be enough to cover all your expenses, coverage of all pre and post-treatment costs for you and your family, quick and hassle-free claim settlement and a good network of hospitals to avail of cashless treatment.

Conclusion

Invest in a good health insurance plan and stay covered in a wholesome and well-rounded manner. The last two years have shown us just how unpredictable life can get. While no one can control the circumstances, you surely can stay prepared for the worst. Get a health insurance plan and stay covered against Omicron and all the other deadly covid variants that can cause havoc to your health and also to your finances. Thankfully, there are many good health insurance plans to choose from. Go online, compare, and find the best policy at the best price today!

The IT department extended the tax filing deadline to 31st December 2021 for filing your returns for the financial year 2020-21. This extension was allowed keeping in mind the disruptions caused by the second wave of the COVID-19 pandemic. However, the deadline is drawing to a close. Have you filed your taxes yet?

If you haven’t, there is no time to lose. Get working on your tax returns ASAP. To help you along, here are some tax filing tips that can come in handy –

1. Check for Section 80C deductions

   Section 80C of the Income Tax Act, 1961 is a very popular and beneficial way of claiming tax benefits on your income. It allows specified investments and expenses as a deduction from your taxable income. One such deduction allowed by the section is for your life insurance premiums. You can claim a maximum deduction of INR 1.5 lakhs on the premiums that you pay for your life insurance policy.

   So, check the premium that you paid last year, i.e. before 1st April 2021. Aggregate the premium that you paid for different types of life insurance plans and claim them as a deduction under Section 80C. 

   Besides life insurance premiums, if you have invested in the ELSS scheme of mutual funds, 5-year fixed deposits, PPF, EPF, etc. you can claim them too as a deduction under Section 80C. Remember, the maximum deduction is limited to INR 1.5 lakhs.

   Pro tip: Collect the payment receipts of your life insurance policies. These might be required to provide proof of deduction. Moreover, for the eligible investments that you have made or expenses that you have incurred, keep the documents of such investments or expenses handy.

2. Account for health insurance premium

   The premium paid towards a health insurance policy is allowed as a deduction under Section 80D. If you are below 60 years, the deduction limit is INR 25,000. If, on the other hand, you are aged 60 and above the limit increases to INR 50,000. This limit includes the premium paid for self, spouse and children. If you insure your parents too, the premium that you pay for their coverage is allowed as an additional deduction under Section 80D. You can claim an additional deduction up to INR 25,000 or INR 50,000 depending on your parents’ age.

   So, check the health insurance premium that you paid last year. Claim a deduction for the premium and reduce your taxable income.

   Pro tip: Like life insurance premium receipts, the receipts of your health insurance premiums should also be kept handy. You might need to submit them as proof of premium payment when claiming the deduction.

3. Check for other eligible deductions and exemptions

   Besides the two major sections of 80C and 80D for life and health insurance premiums, check other deductions and exemptions that you can claim.

   For instance, if you have a savings account, the interest income up to INR 10,000 can be claimed as a deduction under Section TTA. Similarly, check for capital gains exemptions if you have any capital gains in the last year.

Don’t delay tax filing any longer. Start preparing your tax return and keep these tips in mind to claim the maximum tax benefits. You can also take the help of experienced tax professionals for a quick return filing process. 

Moreover, this year’s last quarter is about to start and you would have to plan your taxes for FY 2021-22 within this quarter. Start planning this year’s taxes in advance. You have the next three months in hand in which you can plan your taxes carefully and avoid the mad year-end rush. Invest in life insurance and health insurance for financial security and make sure that you use the deductions and exemptions allowed by the Income Tax Act to reduce your tax liability.

A health insurance policy is important as it helps in covering the expenses of medical treatments and hospitalisation. It, thus, provides financial protection and becomes an important part of your financial portfolio. 

However, a health insurance policy has certain technical aspects which stump many policyholders. Despite the rising awareness among policyholders, some of the finer details of the policy might be challenging to understand. 

Here are 5 such things that you might not know about and the reality of each of them –

1. Denial of cashless claims is not the end of the road

   Every health insurance policy offers the cashless claim settlement facility which eases up the claim process. Even policyholders prefer the cashless claim mode as it eliminates the burden of shouldering the costs of hospitalisation and medical treatments.

   Though insurers have simplified the cashless claim facility, in some cases, the cashless approval might not come through on time or might even be denied. In such cases, many of you think that your health insurance claim would not be settled. Well, thankfully, it is not so.

   The reality

   Even if you don’t get an approval for cashless claims, your claim would still be settled, albeit on a reimbursement basis. You would have to shoulder the medical bills yourself. Thereafter, you can file for a reimbursement claim and get the expenses reimbursed.

   Note:  There is also a claim redressal desk for every insurance company to raise a complaint before approaching the Ombudsman and the court of law, in order to settle your claim.

2. Pre and post hospitalisation claims are always settled on a reimbursement basis

   If you get a cashless approval for your claim, your hospitalisation costs, treatment costs and other associated medical expenses would be paid on a cashless basis. However, when it comes to pre and post-hospitalisation expenses, the cashless facility is not available.

   The reality

   Pre and post hospitalisation expenses are always settled on a reimbursement basis, even if your entire claim is settled on a cashless basis. You would have to collect the medical bills incurred on diagnostics and consultations, fill up the reimbursement claim form and file the form and the bills with the insurer. The insurer would reimburse you for the expenses incurred.

   Note: Most people do not take the trouble of filing for pre and post hospitalisation. However, if your claim does get approved, your pre and post hospitalisation claim would also get easily paid. So, however trivial the amount may seem, it is always prudent to file it. You can file it along with your reimbursement claim.

3. There is a concept of PPN rates in some plans

   PPN stands for Preferred Provider Network. It symbolises specific hospitals tied up with the insurer. There are special PPN rates for listed treatments in such hospitals. If you are admitted to the PPN hospital and undergo a treatment that falls in the specified list, the rate of the treatment would be different from the rate the hospital charges normally.

   Note: The benefit of PPN rates is that it allows listed treatments at lower rates so that the claim amount is lower. This allows you to retain a larger sum insured for other claims.

4. There might be a zone-wise co-pay clause

   Many insurers divide Indian cities into tiers of zones. Metropolitan cities like Delhi NCR, Mumbai, Kolkata, Bangalore, Chennai, etc. fall in Zone or Tier 1. Other populated cities like Patna, Pune, Indore, Bhubaneshwar, etc. fall in the second zone and the rest of the cities fall in the third zone. If you have bought the policy from a city in a lower zone but avail of treatments at a hospital located in a higher zone, you might not get a full settlement of the claim.

   The reality

    The zone-wise distinction is done because the cost of treatments is different in different cities. Metros and other developed cities have higher costs compared to lower developed or lower populated cities of India. As such, at the time of pricing, the location is considered. If you reside in a city in Zone 2 or 3, you might be charged lower premiums.

   Note: However, if you have bought the policy from Zone 2 or 3 but make claims from a higher zone, the insurer charges a co-payment since the claim liability is increased in such cities. You might have to pay a part of the claim yourself if there is a zone-wise co-payment applicable under the plan.

5. All Health Insurance premiums increase with time

   The premium of your health insurance policy does not remain the same lifelong. As you age, you move from one bracket to the other. As such, the premium increases. Moreover, many insurers also charge higher premiums based on your claim experience. If you have made claims in the previous year, the renewal premium might be hiked. This is called ‘claim-based loading’.

   The reality
   However, you should still opt for a plan as early as you can so that you get higher coverage without any exclusions. If you happen to contract any ailment, such as hypertension or diabetes, your chances of getting a health insurance policy underwritten would reduce significantly. Hence, it is prudent to opt for the plan as early in your life as possible.

How many of these hidden aspects did you know about?

Understand your health insurance policy inside out to know what you can expect from it. Whilebuying, keep these points in mind to find the best plan. Moreover, at the time of claims, have a clear understanding of the claim process, so that the claim settlement process is hassle-free.

So, be informed and enjoy the coverage that health insurance plans provide.