Draft norms on health insurance announced earlier this year, allowed insurers to cover non-allopathic treatments done in government hospitals and medical colleges. But general insurance companies have started working on products covering alternative medical treatments such as ayurveda, homoeopathy, unani, sidha and naturopathy long before that.
But experts have not seen much attraction for products extending this benefit. Take for instance, although Cholamandalam MS General Insurance launched Chola Individual Healthline insurance policy last year, but it has not seen much attraction for this product as it had expected.
It is perceived that people flock to non-allopathic treatments. But it is not true, as up to 90% people believe in allopathy in case of major illnesses for instant relief. Non-allopathic treatments are opted for only in case of non-fatal illness.
While, Chola Individual Healthline insurance policy is a stand alone cover, some insurers offer coverage for alternative treatments only under their group health insurance policies like Bajaj Allianz General Insurance.
Insurers like Oriental Insurance, New India Assurance, TATA AIG General Insurance, HDFC Ergo and Star Health and Allied Insurance cover alternative medical treatments under standalone or individual health insurance policies.
No standalone health cover for alternative treatments is available; you have to buy a standard health insurance cover from one of these insurers, which will also cover non-allopathic treatments.
Though many policies offer this benefit, there are curves on the amount and situations under which you can make a claim. For example, treatment under naturopathy is excluded from most of these policies. Experts say that there is no standard protocol in case of alternative treatments. Add to that, costs of each of this medication system vary. This makes computation of cover difficult for insurers. Even under ayurveda, some policies cover select procedures only.
Cholamandalam MS General Insurance’s product covers only ayurvedic treatments, which can be claimed if you are hospitalized for more than 24 hours. On the other hand though New India Assurance covers individuals getting treated with the help of ayurveda, homoeopathy and unani medicines, a claim can be made only to the extent of 25% of the sum insured. More over, treatment should be availed at a government hospital.
Similarly, Star Health and Allied Insurance’s product does not cover naturopathy, and for ayurvedic, homoeopathy, sidha and unani medicines, you can claim up to 25% of the sum insured or a maximum of Rs 25,000 per occurrence, per policy year.
Though the benefits are capped, you will be required to pay for the entire policy. For instance, a 35 years old will need to pay a annual premium of Rs 11,322 for Cholamandalam MS General’s product, for a sum assured of Rs 4.50 lakh. For non-allopathic cover it will be 33,750.
Similarly, for TATA AIG General’s product, a 35 year old will need to pay an annual premium of Rs 5,000 for a sum assured of Rs 5 lakh. And for non-allopathic cover he will need to pay an annual premium of Rs 25,000.
If your claim for alternative medication is accepted, insurers like HDFC Ergo do not accept another claim for allopathic treatment for the same disease.
Hence, cover for non-allopathic treatment can also be looked at the time of buying a health insurance policy but it can’t be one of the main criteria for buying a health insurance policy.
Looking at the cover to premium ratios, you could also do without this benefit because in most cases no hospitalization is required for ayurvedic and homoeopathic treatments. Also most of the people turn to alternative medication, when allopathy gives up the case and then there is hardly anything one can do.
Hence, it is advisable to have a comprehensive health plan, which covers hospitalization in serious or emergency situations. And for additional treatments you could have a small kitty in place.
Private insurer, HDFC Ergo General insurance has launched ‘Health Suraksha Top Up’ plan allowing a customer a larger sum insured limit at lower cost.
