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How is health insurance policy different from Mediclaim policy

10 December, 2018

“Health is wealth” – Undoubtedly it is. And there’s nothing more important in life than good health. Thus, it is prudent to buy the best health insurance plan for yourself and your family. When it comes to purchasing a health insurance plan, it is important to understand its offerings, . Majority of times people are unable to understand the difference between mediclaim and health insurance.  . So, to help you decide better, let’s understand what each of them brings to the table –


Mediclaim Vs Health Insurance


Mediclaim policy is a type of insurance policy that covers hospitalization expenses and treatment related to accident or any specific illness. It does not cover critical illness and other hospitalization charges like a health insurance plan. Simply put, it’s a budget friendly way to mitigate health related emergencies.


Features of Mediclaim policy –


  • Tax Exemption: Mediclaim policy offers tax benefits as per the section 80D of the Income Tax Act, 1961.
  • Claim settlement: It is processed in the form of cashless treatment and reimbursement.
  • Sum assured: The plan comes with a pre-decided sum assured
  • Coverage: A mediclaim policy offers insurance coverage against hospitalization expenses and treatment towards an accident and specific diseases.


Health Insurance –


Health insurance policies are more comprehensive than mediclaim policies. It covers any major illness or accident that needs admittance and treatment in a hospital for more than 24 hours. This policy can be purchased  online without any hassles.


Types of health insurance:


  • Lifeline classic: If you are looking for a comprehensive health insurance plan at an affordable price, then your search ends here. Lifeline classic is the most suitable plan for you. Anyone who is above 18 years of age can buy Lifeline classic. This is offered as an individual plan and family floater plan for self, spouse, and children. This plan comes with sum assured options of Rs. 2Lakhs, 3Lakhs, and 4Lakhs. A few key benefits:
    • In-patient hospitalization expenses
    • Ambulance cover of up to Rs. 3,000
    • Vaccination in case of animal bite - it covers expenses of up to Rs. 2,500
    • All day-care procedures
    • Domiciliary hospitalization charges are covered up to the sum assured


  • Lifeline Supreme: This is like an umbrella for you and your family as it provides comprehensive coverage including annual health check-up, health and wellness benefits, second opinion for critical illness and much more. This plan comes with sum assured options of Rs. 5Lakhs, 10Lakhs, 15Lakhs, 20Lakhs, and 50 Lakhs. Here’re some of the benefits:
    • Ambulance cover of up to Rs. 5,000
    • Vaccination in case of animal bite – covers expenses up to Rs. 5,000
    • All day-care procedures
    • In-patient hospitalization expenses up to the sum assured
    • Emergency domestic evacuation of up to Rs. 1Lakh


  • Lifeline Elite: If you love traveling around the world, then opt for a health insurance plan that provides coverage in India as well as abroad.  This plan comes with sum assured options of Rs. 25Lakhs, 30Lakhs, 50Lakhs, 1Crore, and 1.5crore. In addition to this, this plan comes with a wide range of benefits covering international treatment, critical illnesses, maternity expenses, accident, and several medical conditions. Take a look at some of its benefits –
    • Emergency ambulance cover of up to Rs. 10,000
    • It provides OPD treatment cover of up to Rs. 10,000
    • Emergency domestic evacuation cover of up to Rs. 3 Lakhs
    • Vaccination in case of animal bite – it covers expenses up to Rs. 7,500
    • In-patient hospitalization
    • Annual health check ups


What’s covered under health insurance?


A comprehensive health insurance plan comes with packed features. Here’re some of them –


  • Pre and post hospitalization expenses
  • Maternity Cover
  • ISO certified claim process
  • Tax Benefit under section 80(D)
  • It provides cashless hospitalization at over 3000 network hospitals
  • It provides pre-existing cover after 3 years waiting period
  • It covers 200 Day Care procedures
  • 100% reload of sum assured at no extra cost
  • Receive cumulative bonus for every claim free years
  • Lifetime renewal


In the battle of mediclaim vs health insurance there’s no loser or winner. Both of these exist to fulfill the insurance needs of the policyholder.


            Difference Between Health Insurance and Mediclaim Policy                                      


Health insurance covers the cost of medical and surgical expenses incurred by the policyholder while mediclaim policy offers coverage only for hospitalization and accident-related treatment

Sum Assured

In case of health insurance, 100% reload of sum assured is at no extra cost while mediclaim policy comes with pre-decided sum assured.

Claim Settlement

In case of health insurance, there’s no restriction to the number of claims a policyholder can make in a year while a mediclaim policy is processed in the form of cashless treatment and reimbursement. 

Tax Exemption

Section 80D tax benefit is available for the person who pays for health insurance. Tax exemption of up to Rs. 25,000 can be availed for the premium paid for self, spouse, and children. The maximum exemption amount can go up to Rs 75,000 while in case of a mediclaim policy, tax exemption of maximum 15,000 can be availed for the premium paid.


Health insurance covers everything from pre and post hospitalization expenses whereas mediclaim policy covers only accident related injury.


A health insurance policy offers critical illness cover for more than 20+ diseases while mediclaim policy does not cover critical illness.


Still not sure whether to buy a health insurance or mediclaim policy? The table below will help you in this regard –


Now that you are well aware of the basic difference between health insurance and mediclaim policy, it is beneficial to buy a Standard health insurance plan as it offers a wide range of benefits to take care of you and your family.  Royal Sundaram offers affordable health insurance plans  provides great coverage for your  medical emergencies, thereby promising the security of your loved ones.