Health Insurance: By buying a health insurance policy, we often become carefree that if there is a need for hospitalization, the insurance company will bear all the expenses. Of course, the insurance company pays for medical expenses, but on its terms, not as per your wish. There is a clause of ‘capping’ in health insurance, which is very important to know; otherwise, you will not get a claim despite having insurance. So, why is it so important to know about ‘capping’ before taking health insurance? Let’s understand.
What is ‘capping’ in health insurance
“Capping” in a health insurance policy means the maximum limit imposed by the insurance company on a particular expense, under which the claim is paid! Even if you have taken out a health insurance of ₹ 5 lakh, the cost of every medical facility is fixed under capping. Simply put, capping in health insurance is like a limit or curb on expenses.
In this, the insurance company says that there will be a limit on various types of expenses incurred on treatment, and the claim will be given under that. In health insurance, the limit of hospital room rent, ICU charges, surgery, doctor’s consultation, or any other facility expenses is fixed. You need to know this so that there is no confusion at the time of the claim.
How does ‘capping’ work
Suppose you took a health insurance policy of ₹5 lakh! But, under capping, the limit of hospital room rent is ₹5000 per day! So, you can stay in a room on this budget. If the room rent is more than ₹5000, then you will have to pay the remaining ₹2000 from your pocket.
Because the insurance company will give only ₹5000. Similarly, the rule of capping works in the same way on other medical expenses. Whether it is ICU charges, doctor’s fees, or the cost of a particular surgery, a limit can be set on everything. Therefore, it is very important to read the policy document carefully.
Understand the conditions of ‘capping’ in depth while buying insurance
In such a situation, while buying a health insurance policy, it is important that you know the conditions related to capping well and buy the policy only after seeing the limit of medical treatment. Also, take care of the hospital expenses accordingly. If you are careless, you may have to pay a big bill from your pocket despite having insurance. It is wise to gather all the information beforehand.