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  • Glossary

    Health Insurance Terms Made Easy To Understand.


A hospital is an establishment that provides in-patient and day-care treatment of illnesses, diseases, injuries and various medical conditions. The hospital must be registered with local authorities as per the Clinical Establishments (Registration and Regulation) Act, 2010. It should be equipped with an operation theatre and at least 10-15 in-patient beds (depending on the city's population). It should have a qualified team of medical practitioners, nurses, and attendants working round the clock under its employment.

Hospital Daily Cash

Health insurance providers offer daily hospitalisation cash benefits wherein the policyholder receives a fixed cash amount for each day they are hospitalised. The cash benefit helps policyholders bear the additional expenses not covered under health insurance and typically compensates for the ancillary expenses/ income loss during the hospitalisation period. Insurance buyers can purchase Hospital daily cash benefit as an additional rider or a standalone policy.


Hospitalisation refers to the act of seeking admission in a hospital. Per medical insurance policy terms, a policyholder is said to be hospitalised if they are admitted to a hospital for a minimum of 24 consecutive hours, i.e., in-patient treatment. Hospitalisation also includes treatment for certain day-care procedures, for which the policyholder could be hospitalised for less than 24 consecutive hours.

Home Nursing

Medical professionals sometimes recommend patients who have undergone treatment or surgery at a hospital to continue their treatment and recovery process with Home Nursing. This facility allows patients to recuperate at home, thus saving the hospital rent and other associated costs. Most medical policies cover home nursing expenses.

Health Insurance

Health Insurance is a contract or agreement between an insurance provider and a policyholder. The insurance provider promises to bear the expenses incurred by the policyholder up to a pre-determined amount (sum insured). The sum insured covers the medical costs if/when the policyholder needs hospitalisation or medical care. The insurance provider enlists the various diseases, treatments and surgeries covered and the exclusions in the health insurance policy contract.

Health Cover

Health Cover is an insurance company's liability to pay a policyholder the sum insured to cover the medical expenses resulting from hospitalisation and treatment. The health cover allows policyholders to seek treatment for illnesses and diseases covered under the health insurance contract. A health cover typically includes medical diagnosis costs, surgery expenses, hospital rent, ambulance charges, hospital cash allowance, etc.


A Health Maintenance Organisation (HMO) is a type of medical insurance plan wherein the insurer has tie-ups with a network of healthcare professionals. The HMO plan covers expenses incurred when the insured person receives medical care from the network group only, except for medical emergencies like accidents.

Health Insurance Tax Benefits

Health Insurance Tax Benefits are tax-liability-reducing benefits that a policyholder is eligible for under Section 80D of the Income Tax Act, 1961. Health insurance buyers may claim an annual tax deduction of up to Rs 25,000 for purchasing health insurance for self, spouse and dependent children. They can claim an additional Rs 50,000 in deductions for buying senior citizen health insurance for parents aged 60 years and above. Depending on their age, policy buyers can claim Rs 25,000 to Rs 100,000 per annum as health insurance tax benefits.

Hospital Indemnity

Hospital Indemnity is a type of health insurance plan that covers the actual medical cost subject to deductibles, co-payment or other expenses. Hospital indemnity is distinctive to most regular health insurance plans. In the case of critical health insurance plans, instead of hospital indemnity, the insured person receives a lump-sum amount of the sum insured in a single instalment.

Hospital Cash Benefit

Hospital Cash Benefit means the insured person receives a pre-determined cash amount for each day of hospitalisation. A potential policyholder can purchase hospital daily cash insurance as an additional rider with their stand-alone health insurance policy. Some plans offer twice the fixed cash amount in case the insured person is admitted to an Intensive Care Unit (ICU).


Hospice refers to a special kind of care for patients nearing the end of their life. Under hospice care, healthcare professionals attempt to reduce the pain and symptoms of terminal diseases with the objective of improving the patient's quality of life and ensuring their comfort. Hospice care may also include attending to the patient's emotional and spiritual needs. Some health insurance providers provide hospice care as an additional rider.

Health Insurance Calculator

A Health Insurance Calculator is a freely available online tool that enables prospective and existing customers to estimate the cost of their health insurance premiums. The health insurance premium calculator is available on insurance companies' websites. Interested customers must input their age, gender, family information, required sum insured amount, and contact details in the various tabs of the calculator to compute their estimated premium and receive an expense quote from the insurer.