Family health insurance

Insurance companies in India now provide a single policy that secures the hospitalisation expenses of your entire family. This type of health plan covers your entire family under one policy with one sum insured and one premium. The benefit of a family policy is that the full sum assured limit can be utilized by a single person, versus a lower limit per person for multiple individual policies (for the same premium amount).

How it works?

Insurance companies calculate a single premium for covering the family, based on the age of the eldest person in the family. Typically, health tests are not required if the eldest member is less than 45. The policy covers claim up to the extent of the sum insured, in case of any hospitalization of over 24 hours. Some policies also cover domiciliary hospitalization for specific procedures like cataract operations. Usually the claims can be settled on cashless basis if the hospital is a part of the "network hospitals" of your insurance provider. Typically policies will cover up to 30/60 days of pre/post hospitalization expenses as well. Usual coverage includes diagnostic procedures, boarding and lodging, the intensive care unit, operation theatre, anesthesia, blood, oxygen, surgical appliances, cost of prosthetic and other devices or equipment if implanted internally during a surgical procedure, medicines, drugs and consumables, nursing and medical practitioner charges as per the policy schedule. Do not expect coverage of OPD/Dental benefits.

Things to confirm with your insurance provider.

  1. when are pre-existing diseases covered? (if applicable to you)
  2. number of network hospitals in your city and the country
  3. cashless facility availability
  4. income tax benefits

The table below compares the cost of such a policy for a family in case the eldest member of the family is 32 years old and the sum is Rs. 200000 and the policy is for 1 Year. Note that these figures will change depending on the age/sum insured/policy time/number of family members. Many companies provide multiple products in this category, that can provide varying benefits. The table below is provided only as an example. Please check with your health provider for the latest quotes and benefits. Quotes (in Rs.) are taken from the official websites/partner sites and include service taxes of 12.36%.

Insurance Provider Policy Name Family (2 adults, 1 child) Family (2 adults, 2 children)
Apollo DKV Health Easy Health 4754 7079
ICICI Lombard Family floater 5229 6423
National Insurance NA 4023 4578
New India Assurance NA 5103 5832
Reliance Healthwise 2365 3045
Royal Sundaram Health Shield NA NA
Star Health and Allied Insurance Family Optima Health Insurance 3702 3882
United India Assurance NA 3884 4300
Last updated - June 15, 2008