Updated on 13 Dec 2025
Even with comprehensive health insurance, hospitalisation often brings out-of-pocket expenses that policies may not cover. Costs for transportation, meals or time away from work can quickly add up, creating additional financial stress. To manage all these expenses, many health insurance providers offer a hospital daily cash allowance. This particular benefit provides a fixed, regular amount for each day you are hospitalised, providing financial relief beyond the normal hospital expense coverage.
What is the daily cash benefit in health insurance?
As the name suggests, it is a daily cash allowance designed to help cover expenses beyond the hospital bills. Policy providers offer daily hospital allowances either as a part of the insurance policy or as an additional rider. Before buying any health insurance policy or a daily hospital allowance rider, you must ensure:
- The daily cash limit offered to you
- Your eligibility for the policy
- Coverage span of the policy
Why is the daily cash benefit important?
Here are some reasons that make the daily cash benefit so essential:
- Covers miscellaneous costs: The daily cash benefit helps in paying for transportation, food and various other out-of-pocket expenses.
- Supports the family's needs: This specific benefit also helps cover for relatives who stay back with the patient.
- Income replacement: When the patient is the main earner of the family, the daily allowance will provide a small but steady monetary support to the family.
- Peace of mind: Knowing that you have additional funds during hospitalisation helps in lowering the stress level.
How does the daily cash benefit work?
The daily cash benefit works in a straightforward way. A fixed amount is set when the insurance plan is chosen, and most providers require a minimum 24-hour hospital stay to make a claim. This benefit does not cover daycare procedures or minor surgeries that don’t involve overnight hospitalisation.
Daily cash limit and coverage span of the policy also vary according to the policy provider. Usually, policy providers offer a cash limit between ₹1000 - ₹1,500 with a coverage span that varies from 3 to 10 consecutive days. Those admitted to the Intensive Care Unit (ICU) may avail cash benefits in excess of the upper cash limit, but the number of covered days will be reduced proportionately.
Persons with pre-existing medical conditions need to go through a waiting period during which they cannot make a claim. Therefore, you need to carefully assess the eligibility conditions and your medical history before buying a policy to avoid any conflict arising at the time of claim.
What is required to submit a claim under hospital daily cash benefit?
To claim the daily cash benefit, an insured individual needs to do the following:
- Submit the discharge summary and hospital admission as evidence.
- Provide all the hospital reports and bills to confirm the stay duration.
- Fill in the claim form within the given time.
- In case of cashless plans, some insurance firms will credit the daily benefit directly after confirmation.
Conclusion
The daily cash allowance is an excellent addition to the medical or senior citizen health insurance plan. It makes sure that you get extra monetary help for the non-medical costs during hospitalisation. This benefit adds a layer of stability and peace of mind, ensuring that recovery can remain the focus without worrying about incidental expenses.
If you’d like guidance in finding the right health plan, consider filling out the form on this page. An advisor can walk you through your options and help you select coverage that suits your needs.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified medical and/or nutrition professional for any questions. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.