Monday, 15 April 2013

Health insurance – Exhaustive and Convenient



Health insurance coverage enables you to focus on a speedy recovery without worries about how medical bills will be met



Not only is the coverage offered by health plan exhaustive in nature (health plans cover pre and post hospitalisation expenses, day-care treatments, even pre-existing illnesses, etc.) but they are convenient to operate as well. ‘Assignment of benefit’ is one such convenience offered.

Assignment of Benefit

During a medical emergency, it may not be possible for either your family member(s) or yourself to complete all the documentation formalities, collect the sum assured from the insurance company and pay the same to the concerned hospital or the doctor against the medical bill. In such a scenario, you can authorise the insurance company to pay the medical service provider directly for the health care that you have received. In other words, you are assigning the benefits of your insurance plan directly to the medical service provider, without your intervention.

Assignment of benefits can only happen when a legally binding agreement is effected between the insurance company and yourself.  Standard forms are available with the medical service providers to effect the agreement. Once this agreement is in place, the hospital or the doctor can send your bills directly to the insurance company and receive the requisite payments. If there is no such agreement, you have to pay the medical costs initially and then the insurance company will reimburse you up to the maximum sum assured receivable under the health insurance plan.

Remember, after executing the ‘assignment of benefits’, if the unsurer rejects the medical bill furnished by the medical service provider, then, you have the responsibility to make the payment to the underlying doctor or hospital.

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