Can You Buy Multiple Health Insurance Policies Legally?

Due to rising medical inflation and costly treatments, there have been many questions about whether owning a single health insurance plan is enough. Fortunately, you can own multiple health insurance plans legally in India.

In accordance with IRDAI regulations, individuals may legally hold more than one health insurance plan to increase their protection against high medical costs. Even though multiple insurance policies may offer several advantages to customers, they also require careful consideration of the claim settlement rules and terms stipulated by each policy.

Read on to learn more about the benefits of having multiple health insurance and how they work.

How Does Having Multiple Health Insurance Work?

When you own two or more healthcare policies, one serves as your main coverage while the other serves as a backup. In other words, your secondary coverage will cover any unpaid expenses after your primary coverage has been applied.

Each health insurance plan has a Coordination of Benefits (COB) policy that outlines how it collaborates with other health insurance plans. This enables insurance companies to communicate and avoid duplicate payments for a patient's services. When you have COB, you can claim up to 100% of the expenses incurred for medical procedures and checkups.

What Are the Advantages of Possessing More Than One Health Insurance Policy?

Owning multiple health insurance policies will increase your security and help you cope with rising health costs. Below are the top five benefits of possessing more than one health insurance policy.

Greater Coverage

One of the key benefits of having more than one health insurance plan is the availability of ample coverage.

If your main plan does not provide facilities such as maternity cover, critical illness cover, wellness cover for mental health, or day-care procedures, you may opt for another insurance plan to ensure greater coverage. By doing so, you will be able to select the right combination of facilities to meet your family's requirements.

Increase in the Total Sum Insured

In cases where the cost of medical procedures, surgery, or even the hospitalisation period exceeds the sum insured by a single insurance plan, an additional insurance policy can help you overcome this difficulty.

For instance, if one insurance plan offers ₹5 lakhs while the other offers ₹3 lakhs, your total sum insured will be ₹8 lakhs.

Reduced Out-Of-Pocket Payments

Having multiple health insurance plans can help you lessen your personal expenses. Your first insurance company covers your losses within the limits, and the second insurer can take care of the rest of your expenses. It can be quite beneficial when you face costly cases, such as ICU admissions or surgeries, and need higher coverage that a single plan cannot provide.

More Claim Convenience

In cases where two insurance companies issue health policies, you will have greater claim flexibility. In case one insurer refuses, delays, or partially pays your claim, you can opt for another plan based on the conditions.

Having more than one health insurance plan in India is perfectly legitimate and may even be the best financial move due to rising healthcare costs. Regardless of whether you want greater coverage, more perks, or just backup plans for major health problems, having multiple plans can be beneficial when handled prudently.

However, it is crucial to know how claims will be settled, what the policy terms state, and any required disclosures to prevent problems later on.