Falling ill and being admitted to the hospital is never easy. On top of the stress of your health, you might have to think about extra costs while staying in the hospital. These can include expenses for visitors’ food, travel or other small daily needs that are not always covered by your medical insurance. That’s where a daily hospital allowance, or hospital daily cash benefit, comes to your assistance. It helps you manage extra expenses without worrying too much about money.
In this article, we will explain what a hospital daily allowance is, how it works, its key features, and what you should know before you buy a policy.
How does the daily hospital cash benefit work?
A hospital daily allowance is a benefit that is either provided as a part of the medical insurance policy or as a rider with the plan. When you are admitted to the hospital, you will get a daily cash payout for each day you stay there. This money may help meet incidental costs during hospitalisation, such as travel, meals for accompanying relatives or temporary loss of income. The amount is usually fixed and does not depend on the bill you get from the hospital.
The biggest advantage of a hospital daily allowance is that it helps you handle extra costs that are not part of your hospital bill. This way, you can focus more on getting better instead of worrying about smaller expenses.
All you usually need to do is submit a simple hospital admission report and discharge summary to claim the money. Compared to a normal insurance claim, this is much easier and faster.
Understand your health insurance policy
Before buying any health insurance policy or adding the daily hospital allowance rider, you must ensure the following:
- The daily cash limit offered to you
- Your eligibility for the policy
- Coverage span of the policy
Most insurance providers ask for a minimum 24-hour hospitalisation to be eligible to make a claim. Daily hospital allowance does not apply to day care procedures and minor surgeries, which don’t require a 24-hour hospitalisation. Daily cash limit and coverage span of the policy also vary according to the policy provider. Usually, insurers offer a cash limit between ₹ 1000 - ₹ 1,500 with a coverage span that varies from 2 weeks to 3 months. Those admitted to the Intensive Care Unit (ICU) may avail of cash benefits above 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.
Key features of the daily hospital allowance
A daily hospital cash benefit usually comes with a set of features. Here are the most important ones:
- Fixed amount per day: The insurer pays you a fixed amount for each day you stay in the hospital.
- Daily limit: There is usually a maximum daily limit depending on your plan.
- Maximum number of days: There will be a cap on the number of days you can claim in a policy year, for example, 30 or 60 days.
- No link to hospital bills: You get the money even if you do not spend it on hospital bills. It is yours to use as you wish.
- Covers ICU stays: Most policies also pay a higher daily amount if you are in an intensive care unit (ICU), since costs are higher there.
- Waiting period: You may have to wait for a short period before you can claim, usually 30 days from the start of the policy.
- Easy documentation: You only need to provide proof of hospital admission and discharge, with the doctor’s note and hospital records.
These features make the daily hospital allowance a practical safety net in times of medical emergencies. It can be especially useful when caring for parents, as they may face more health issues with age. Having proper medical insurance for parents can cover their medical treatment, while the hospital daily allowance helps manage extra daily costs during a hospital stay.
Things to remember before buying a policy
Hospital daily allowance policies can be tricky sometimes. Although the procedure to claim your daily payout is simple and closely resembles the usual medical bills claiming procedure, yet, the cash benefits may not be availed at the end of each day. Some insurers may provide you with the flexibility of a daily allowance, but usually, most of them will provide cash benefits only after you are discharged.
It is always better to check whether your policy offers pre-fixed or per-day cashouts beforehand. The procedure of making a claim is easy, yet some people feel it’s complicated and avoid claiming once their medical bills are settled. This should be avoided, and any claim, no matter how small or large it is, must be made following the policy’s terms and conditions.
Conclusion
A hospital daily allowance, or daily cash benefit, can be a real lifesaver during a medical emergency. It gives you freedom to handle unexpected daily costs without adding financial stress at a time when you should be focusing on getting better. While it is not a replacement for your main medical insurance, it is a great extra layer of protection, especially for people with families to look after or those who may have to travel far for treatment.
If you would like guidance on choosing the right health insurance plan and understanding the benefits available, please fill out the form on this page. Our expert can help you make a well-informed decision that suits your needs and budget.
FAQs
1. Is a daily hospital allowance the same as normal health insurance?
No, it is an extra benefit that gives you a daily cash amount on top of your main health cover.
2. Can I use the daily cash for anything?
Yes, the daily cash benefit is provided separately from treatment costs. You may use it for reasonable incidental expenses related to hospitalisation, like travel costs and meals for accompanying family.
3. Do I need to show my hospital bills to claim it?
No, you just need to show proof of admission and discharge from the hospital.
4. Is there a waiting period for the daily hospital allowance?
Yes, most policies have a short waiting period of around 30 days before you can make your first claim.
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.