Frequent illness and hospitalisation have long lasting impact on the individual. Apart from the psychological trauma, long periods of hospitalisation often leave the individual financially crippled. This is the rationale behind many insurance companies coming out with health plans which offer a financial cushion in the event of a hospitalisation. In this context, the Health Plan of Bajaj Alliance insurance company may be noted.

The Health Care plan of Bajaj Alliance protects the policyholder and his family from the high expenses associated with medical care and also provides the comprehensive financial cushion against various health related hazards.

• Unlike other health care products which need to be renewed on a yearly basis, the Health Care plan of Bajaj Alliance is a three year health insurance plan.
• The health insurance cover is provided along with a life insurance benefit. Hence, this health plan also doubles up by providing a risk cover in the event of loss of life of the policyholder.
• The minimum amount for the life cover is Rs.10,000.
• This policy also provides cash to the policyholder when he/she is admitted in the hospital. The amount of hospital cash is a maximum of Rs.500 per day (Rs.1,000 per day in case of ICU) which can extend up to a maximum of Rs.30,000 in a year.
• In the case of surgical expenses, an amount is paid as surgical benefit which is equal to Rs.50,000 per annum.
• This policy also has a critical illness cover of Rs.50,000 payable during the policy term.
• The Health Care plan of Bajaj Alliance also provides cash flows in case of accidental permanent total or partial disability where Rs.50,000 is payable on permanent disability and Rs.25,000 is payable on partial disability.

The benefits of this insurance plan are given as follows:

• The entire life cover is payable on the death of the policyholder.
• This policy provides hospital cash allowance. (Hospital Cash Benefit). The worry of meeting the expenses related to the hospitalisation adds on to the trauma of hospitalisation. The hospital cash benefit plays an important role in reducing the financial trauma. In the event of hospitalisation, due to sickness or injury or disease this policy pays the room rent of the hospital for each full day's stay. The amount is payable in lump sum at the end of the stay in hospital. The benefit period starts after a waiting period of 60 days from the commencement of the policy or reinstatement of the policy, except for accidental injury.

Recuperating from a surgery/major treatment takes time and further reinforces the trauma of the patient. The post hospitalisation benefit of this plan allows the policyholder to avail this facility without adding burden to his wallet. This plan pays 50% of the hospital cash benefit claim settled per day for a maximum of 5 days in a policy year for essential follow-up treatment on the basis of recommendation of the hospital/surgeon. This ensures that post hospitalization expenses do not drain the resources of the policyholder.

The costs of doing a surgery have gone up significantly today. The surgical benefit pays the policyholder the expenses involved in the surgery done by a qualified surgeon performed at a hospital. However, it needs to be noted that to avail this benefit, the hospital needs to be registered and should have a minimum of 15 beds (as in-patient) for surgical procedures

The benefit amount payable is equal to the surgical expenses. For the purposes of reimbursements, this policy has defined surgical expenses as surgeon's fee, operation theatre charges and anesthetist's charges subject to the maximum surgical benefit amount payable in a policy year. The surgical benefit can only be claimed if the illness covered is diagnosed at least 180 days after the date of commencement of policy or reinstatement of policy. No waiting period if surgery is due to accidental injury.

Some illnesses like are critical as they not only alter the policyholder's life pattern but the cure for such diseases is not only long drawn but also very expensive. Such a regular outflow of cash over long periods of time results in a financial drain for the policyholder. The critical illness benefit plays an important role in softening the financial impact of the illness by paying a lump sum (as per the cover selected) immediately on the diagnosis of the disease. At the same time the other benefits under this policy will still continue.

At this stage it is important to note the caveat. The critical illness benefit can only be claimed if the illness is diagnosed at least 180 days after the date of commencement or reinstatement of policy. The following specified diseases have been labeled as "critical" under this plan and are eligible for the critical illness benefit: first heart attack, coronary artery disease requiring surgery, stroke, cancer, kidney failure, and major organ transplantation, multiple sclerosis, aorta graft surgery, primary pulmonary arterial hypertension, Alzheimer's disease and paralysis.

Accidents are unpredictable and so are the consequences. They may lead to a permanent disability - partial or total. This benefit provides a financial cushion against such misfortunes.

Accidental permanent total disability will mean total and permanent disability as a result of an accident (within 180 days from the date of accident) resulting in loss of both eyes, or both arms or both hands, or one arm and one leg, or one arm and one foot, or one hand and one foot, or one hand and one leg, or both feet removal of lower jaw. Loss of permanent partial disability will mean loss of one eye or one leg or one arm or one hand or one foot.