A health cover that reinstates the sum insured, for a price

Larsen & Toubro General Insurance forayed into health insurance with My: Health Medisure Prime Insurance. The product offers reinstatement of sum insured in case of hospitalisation due to an accident.

During the term of the policy, if the sum insured gets used up and there is a subsequent hospitalisation due to an accident, the sum insured of the policy is reinstated.

Joydeep Roy, CEO & wholetime director, L&T General Insurance says, “The offer is available for individual as well as a floater policy. Through this, we are helping the insured to get a cover for subsequent hospitalisation only if it has been exhausted in case of an accident.”

Under this product, there is no limit for the subsequent hospitalisation. If the entire sum insured gets used up, the insured is not charged extra while renewing the policy as well.

This service is available to customers who fall under any sum assured bracket. “Our policy may be 10-20% more expensive than others, but we get an edge as we sell all these services inclusive in our policy and not as riders,” Joydeep Roy said.

YM Deosthalee, chairman and managing director at L&T Finance Holdings says, “We are confident that this product will provide a customised solution and raise the bar of customer expectation.”

Reinstatement of sum insured in case of exhaustion is a new feature for a health insurance product. It is a hospitalisation reimbursement plan.

The maximum and minimum cover of the plan is Rs3 lakh and Rs10 lakh, respectively. Besides, there are no sub limits for the amount that can be spent under various heads. They offer a pre-existing disease cover after 2 years. In case a person is tested with any of the prescribed critical illness, then he will be provided with a double sum assured.

It is an additional cover for people diagnosed with critical illness. The renewal premiums under this policy will remain constant after the age of 80.

If the sum insured gets exhausted during the policy period and there is a subsequent hospitalisation due to an accident, some of the insurance companies provide a certain percentage of the cover.

Amarnath Ananthanarayanan, managing director & CEO, Bharti AXA General Insurance says, “We have a similar plan, where we give double sum insured for treatment of a critical illness but we offer this service through a rider. Reinstatement of sum insured in case of exhaustion is an innovation.”