How Reinstatement of Sum Insured Works After Mid-year Exhaustion?

Reinstatement of sum insured, commonly known as a refill benefit, is a facility provided by the insurer that restores the full sum insured when it is exhausted by multiple claims within a policy period. Here comes the role of reinstatement of the assured sum, which comes into effect and helps you continue treatment during the same policy year.

The refilled sum can not be transferred to the next policy year. Keep reading this article to learn how the reinstatement of sum works.

What is Reinstatement of Sum Insured?

Reinstatement of sum insured (also known as restoration benefit) is a provision by the insurance company that allows you to be allocated the full sum assured of the purchased insurance policy within the current policy period after the entire sum has been used across multiple claims.

The resoratoion benefit is an add-on facility that requires an extra premium to avail it within the same policy year.

What are the Types of Reinstatement of Sum Insured?

There are 2 categories of restoration benefits, which are discussed below:

Automatic Restoration

In this case, when the sum assured, along with any cumulative bonus, is exhausted at any point in time within the policy period, the insurer automatically reinstates the sum assured without any prior request.

Conditional Restoration

Conditional restoration requires certain pre-existing conditions to be met at the time of reinstatement, upon prior intimation. This type of restoration is applicable only for unrelated illnesses and may apply for subsequent hospital admissions, not the first one.

What are the Key benefits of Reinstatement of the Sum Insured?

The key benefits of the reinstatement of the sum insured are as follows:

Extended Coverage

If you use up your insured sum on hospitalisation or planned surgery, this add-on benefit provides a cashless facility for the subsequent hospitalisation within the same policy year.

Peace of Mind

It provides substantial financial support, giving you confidence that you can continue treatment after the initial sum is exhausted.

Useful for the Whole Family

If you have insurance for all family members, it continues to protect them in urgent medical situations during the policy period.

How to Buy a Refill Benefit Health Insurance Plan?

You can avail the restoration benefit when taking out a new insurance policy or renewing an existing mediclaim policy. If the reinstatement of the sum insured facility is provided as an add-on benefit, it may incur an extra premium.

There are so many conditions that must be met to get this benefit, so carefully read the policy paper and get a clear idea from the insurer's authorised person.

Can the Reinstated Sum be Used for the Same Illness?

You can use the refilled sum for any illness or surgery if you have a family floater plan for the current policy period. But you can not use the recharged amount for the same person for the same illness.

Many insurance companies offer a refill benefit to insureds. The reinstatement of the sum insured is a must-have condition for your insurance plan in the modern era.

Although the facility comes as an add-on benefit, incurring an extra premium, it protects you in multiple hospitalisations and provides you support in unforeseen medical situations.