July 18, 2024

You shouldn’t have to worry about medical costs when it comes to your health and your family’s health, whether hospitalisation is unexpected or planned. A safe and reliable solution to reduce these medical costs is health insurance. There are many types of health insurance plans that you can consider. Indemnity Health Insurance is one of them. Continue reading to learn more about indemnity health insurance plans and their advantages.

What is indemnity health insurance?

Health insurance programmes, known as indemnity policies, cover the real medical costs associated with hospitalisation and reimburse you for them. According to the terms and conditions, you may make claims up to the maximum amount of the sum covered. If you have indemnity health insurance, the insurer may cover the full amount of the medical bill, excluding any deductibles, when you are hospitalised. Individual and health insurance plans for family are available for purchasing indemnity health insurance.*

Why choosing indemnity health insurance is essential?

The following are the benefits of selecting an indemnity-based health insurance plan.

  1. Rising medical expenses: Medical care is expensive. An indemnity plan could help with the fees in the event of an unforeseen incident.
  2. Reduce personal expenditures: In the event of a planned or unforeseen hospitalisation, an indemnity-based health plan could pay the entire medical expenditure, excluding the deductibles and other related costs.

Advantages of purchasing indemnity health insurance:

The key benefits of choosing indemnity health insurance are listed below.

  1. Flexibility in hospital choice: You can select the hospital from the company’s network based on your preferences. The advantage of a cashless facility is that it eliminates the worry of having to pay a large medical bill upfront and then get reimbursed later.*
  2. Widespread coverage: Pre- and post-hospitalisation costs, ICU costs, room rent, surgeries, diagnostic procedures, medication, daycare costs, and in-patient costs, including physician fees, could be covered.*
  3. Affordable plans: Indemnity health plans can come with deductibles. The cost of the health plan decreases if you choose a larger deductible. Since you are prepared to pay out of pocket, the insurer faces less risk, which results in a lower cost for your indemnity health insurance plan.*


Cons of Health Insurance Plans with Indemnity:

Health insurance plans with an indemnity component don’t have many drawbacks. However, deductibles are one of the major drawbacks of indemnity-based health insurance plans; as a result, you must pay a specified amount of the cost out of your own pocket.

Inclusions and Exclusions:


  • In-patient hospitalisation (a minimum of 24 hours of hospitalisation)
  • Pre and post-hospitalisation
  • ICU
  • Diagnostic procedures
  • Daycare services
  • Medicines*


  • Pregnancy
  • Existing illness
  • Dental/cosmetic procedures
  • HIV/congenital disorders
  • War/ intentional injuries
  • supplies like a PPE kit, etc.*

Costs and deductibles for the Indemnity Health Insurance Plan:

Indemnity-based health plans are priced similarly to other types of health insurance based on the beneficiaries’ various characteristics like age, pre-existing conditions, the amount of insurance, the number of beneficiaries, etc., are a few of them. Deductibles are present in the majority of indemnity policies. As a result, you must pay a set sum out of your own pocket.*

Important things to note about indemnity health insurance

To gain the most benefit from indemnity-based health insurance, consider the following factors before making your decision.

  • Most indemnity-based health plans often cost more than fixed-benefit plans.
  • When the insurer resolves the claim, deductibles are taken into account.
  • An online insurance is a good option for a seamless experience.
  • Usually, there is a 30-day waiting time before you can utilise the coverage.

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply


Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.


Garth Gregory

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