Which plan type suits me better - indemnity or fixed benefit?

Indemnity or fixed benefit plan? Which is better for you depends on your healthcare needs, financial situation, and risk coverage preferences. However, both kinds of plans serve different benefits and purposes.

It is recommended to opt for indemnity insurance if you want extensive coverage for maximum ailments, treatments, and procedures at an affordable premium. But if you have a family history of critical illness, then choose a fixed benefit plan.

What are Indemnity Plans?

These are the types of plans that cover your actual medical expenses up to the sum insured. This means that the insurer either reimburses or directly settles the hospital bills at network hospitals. Indemnity plans usually cover hospitalisation expenses such as room rent, doctor’s fees, diagnostic tests, and medicines.

What are Fixed Benefit Plans?

A fixed benefit health insurance policy pays a certain amount to the insured person if a pre-defined illness or disease occurs. If the insured person contracts any disease or condition as listed in the policy, the insurer will provide a guaranteed and fixed amount to the insured.

Which is better: Indemnity or Fixed Benefit?

• Indemnity-based plans: Choose this plan if you want comprehensive coverage for regular medical expenses, surgeries, and hospital stays.


• Fixed Benefit plan: If you want to cover hospitalisation expenses, or you’re worried about the cost of serious health conditions that require ongoing care or income loss, then this plan is ideal.