- May 2014
- December 2013
Ruby Jacob, 03 Apr 2013
Reliance Life Insurance Company has launched a new health insurance policy called Reliance Life Easy Care Fixed Benefit Plan today. It is a combo plan of mediclaim and critical care cover.
Easy Care Fixed Benefit is a fixed benefit plan, fixed term plan. The policy is valid for 5 years and premium is constant for those 5 years. At first glance you would be confused how the policy is supposed to work. Hospitalization expenses are also covered as a lumpsum benefit and not as bills reimbursement benefit.
Policy benefits and payouts have been differentiated into 6 types- Daily hospital cash benefit, ICU benefit, Recuperation benefit, Surgical cash benefit, Major surgical benefit and Critical illness. A claim on critical illness or major surgical benefit would get 100% sum insured whereas a claim on hospitalization would get 1% of sum insured daily, another 1% for ICU if applicable, an additional 3% for recuperation of same disease. For claim on surgeries other 10 major surgeries covered a lumpsum benefit of 10% of sum insured is paid.
Reliance Easy Care Fixed Benefit is an individual policy for those between 18-65 years of age. Policy can be renewed every 5 years up to 75 years of age.
There are 5 options for sum insured ranging from Rs 1 lakh to Rs 5 lakhs. Premiums are on the higher side yet it is comparable to a similar combo policy from Star Health Insurance, whose features are in fact more flexible.
What is disappointing about the policy is the exceptional list of policy exclusions. Pre-existing diseases are not covered for 4 years in each 5 year term. Pre-existing disease also means direct or indirect complications arising from such pre-existing conditions, even if they were not diagnosed before. Diseases diagnosed within waiting period will not be covered.
Claims due to participation in naval, military, air force, diving and such dangerous activities are excluded. The waiting period is 90 days instead of the usual 30 days. Similarly non-allopathic treatment or treatment not of 'reasonable' cost is not covered and the list does not end there. Some of these exclusions leave huge scope for even genuine claims to be rejected. Click for complete review of Reliance Life Easy Care Fixed Benefit Plan.
In our view Personal Finance should be kept simple and uncomplicated. Too many exclusions in an insurance policy is bad. Policy benefits broken up into many sub-plans don't make the best mediclaim. Ideally there should be no sub-limits within a mediclaim policy.