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Critical Illness Insurance

Critical Illness Insurance provides for payment of amount equal to sum assured, if illness strikes, irrespective of expenses incurred on treatment. Most insurance companies are providing this insurance as an addition to the life insurance; additional premium payable for critical illness. It is introduced as a value addition to meet the demands and also as marketing strategy. The insurance covers surgery cost, critical illness cover and post-hospitalisation. The insurance is different in paying only for prolonged hospitalisations. One of the unique features of this insurance is that a lump sum allowance is paid irrespective of the actual medical expenses.

Calculation of Critical Illness Insurance Amount/Premium:

The amount of premium depends on the insurance of the insurance company. Sometimes life insurance companies charge extra premium for the insurance, which is an add on to the LIP. Premium is generally paid on a yearly basis.

Critical Illness Insurance Claim Procedure:

Insurance holders can make multiple claims till their lifetime cover is exhausted. The company pays a lumpsum amount as claims irrespective of the actual expenses, as against a medical insurance, which is only a reimbursement insurance. The claim should be reported to the insurers, who in turn will appoint a surveyor. Surveyor will check the necessary documents and analyse the extent of damage. The claim process takes anywhere from 7-21 days.

Documents Required for Critical Illness Insurance Claim:

  • - Copy of FIR (If any)
  • - Medical Certificate & details of medical expenses & disability certificate
  • - Leave certificate from employer
  • - Duly filled Claim Form
  • - Salary Certificate from employer

List of Some of Insurance Companies Offering Critical Illness Insurance:

HSBC - Illness Cover
Life Insurance Co. - Critical Illness Benefit Rider *Terms and conditions may vary in different insurance companies