What is Indemnity Insurance?
Indemnity insurance refers to the type of health insurance where the insured individual is compensated for actual medical expenses. The word 'indemnity' means 'to pay or reimburse someone against loss or damage.' Usually, indemnity insurance is designed for business owners or professionals such as doctors, lawyers, and financial advisors.
Indemnity health insurance can be bought as an individual or family floater policy after paying premiums as per the health plan terms and conditions.
Key Takeaways
- Indemnity health insurance compensates or reimburses the policyholder for loss or damage.
- Ideal for business owners and professionals like doctors and lawyers.
- Professional indemnity insurance for doctors protects against claims arising from injuries or death of a patient caused by alleged error, omission, or negligence in professional services.
- Indemnity health insurance covers ICU charges and treatment expenses at affordable premiums, offering additional deductible benefits.
How Does Indemnity Insurance Work?
Let us understand indemnity health insurance with an example:
Mr. Prayag underwent a planned treatment, with a total hospital bill of INR 5 lakhs. He had purchased an indemnity insurance policy of INR 10 lakhs, which covered his entire hospital expense of INR 5 lakhs. The remaining sum insured of INR 5 lakhs can be used later during the policy tenure.
However, indemnity insurance typically does not cover pre and post-hospitalization expenses. Despite this, indemnity health insurance offers multiple other valuable features.
Professional Indemnity Insurance for Doctors
Indemnity health insurance plans are designed to provide benefits to professionals like financial advisors, lawyers, and accountants. It is an ideal solution for doctors, who deal with several patients daily and are responsible for diagnoses, prescribing medicines, and advising treatments.
There is no room for error for a doctor, as even a minor mistake can have severe consequences. Patients sometimes sue doctors for perceived mistakes, and this is where Professional Indemnity Insurance for doctors acts as a crucial shield.
A doctor indemnity insurance policy protects doctors against claims arising from injuries or death of any patient caused by or alleged to have been caused by error, omission, or negligence in professional services.
To understand more about doctor's indemnity insurance, connect with our experts at PolicyX.com.
Benefits Of Indemnity Health Insurance
Flexibility to Choose Your Hospital
The insurer has tie-ups with a list of network hospitals and medical practitioners. Cashless treatments are available as per your needs, allowing you to focus on your recovery and treatment.
Avail Extensive Coverage
Indemnity health insurance offers extensive coverage, including for COVID-19. It covers a broad range of treatments and procedures.
Economical Option
Indemnity health insurance often includes a deductible option. A deductible means the policyholder pays a certain amount of the treatment cost. This reduces the insurer's risk and makes premiums more affordable for the policyholder. A higher deductible typically results in a lower premium.
Indemnity Health Insurance Inclusions
You WILL BE covered for:
- ICU expenses
- Day care treatments
- Modern treatments
- Diagnostics
- Hospitalization expenses (e.g., room rent, nursing charges)
- Consultation fees
- Ambulance charges
Indemnity Health Insurance Exclusions
You WILL NOT BE covered for:
- Cosmetic procedures
- Fat loss surgeries
- Injuries due to war
- Hospitalization due to drug abuse or overdose
- Injuries or hospitalization due to involvement in illegal activities
Corona Kavach Indemnity Insurance Plan
Corona Kavach, an indemnity health insurance plan launched by IRDAI, was designed to combat COVID-19. The plan covers insured individuals for:
- PPE kits
- ICU cover
- Doctor's fees
- Ambulance cover
- AYUSH treatment
Wrapping It Up
Indemnity health insurance is ideal for those seeking affordable insurance with broad coverage. This health plan protects professionals and business owners, including doctors, lawyers, financial advisors, and real estate agents.
If you want to know more about indemnity health insurance, connect with our insurance experts at PolicyX.
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