What is Hospital Daily Allowance In Health Insurance?

Certain medical conditions which require hospitalisation are costly and it can be difficult to manage these along with ongoing financial commitments. A health insurance plan with a hospital daily allowance helps you cope with increased non-medical expenses. Let us help you understand its benefits in detail.

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Hospital Daily Allowance In Health Insurance

Hospital Daily Allowance is the sum of the cash you are eligible to receive from your insurance provider for each day of your hospitalisation for more than 24 hours. When you or your family member undergoes surgery or treatment that requires hospitalisation, it involves many non-medical expenses such as travel, food, and medicines. These expenses can be very high and can hit your savings as well. Therefore, a health insurance plan with a hospital daily allowance helps you cover additional expenses and offers you mental peace. Usually, a maximum of 30 days are covered in a given policy year and can be availed for multiple hospitalisations.

Advantages Of Hospital Daily Allowance In Health Insurance

You may purchase it as an additional cover in your health insurance policy and use it as and when required. Here are the benefits of having a policy with a hospital daily allowance.

Hospital daily allowance provides you with a lump-sum amount as agreed during the policy purchase. Suppose you are insured with it and need hospitalisation for more than 24 hours. In that case, you are eligible to receive a lump-sum amount to cover the non-medical expenses during your hospitalisation.
The daily hospital cash allowance is not fixed for a specific expense. As an insured person, you are eligible to receive a lump-sum amount. You can use it for various non-medical charges such as traveling, hotel stays, and others.
The premium you pay to add this cover is affordable. So, you need not worry about higher costs. Instead, you can add it to your existing insurance policy for a reasonable price.
Having a health insurance policy with a hospital daily allowance offers you peace of mind. You do not have to worry about the other non-medical expenses that occur with your hospitalisation. Your insurance provider will bear these expenses for you.

Details About Hospital Daily Allowance At ACKO - Hospicash Add-on Cover

ACKO Health Insurance offers a feature called Hospicash add-on cover, which is called Daily Hospital Cash Benefit. It provides you daily cash for a fixed number of days during your hospitalisation. It covers non-medical expenses such as food, travel, and hotel stay, which helps you be stress-free. If the coverage limit in the hospital plan is Rs. 1000 and the actual bill is Rs. 500, the insurer will pay Rs. 1000. Therefore, this add-on acts as a safety net when you incur additional expenses during hospitalisation.

As an insured person, you will be eligible to receive a daily cash allowance of a fixed amount, which is Rs. 2,000 to Rs. 3,000. You will receive it for a fixed number of days, for 10 to 20 days as per the agreement. The add-on cover primarily covers yourself, your spouse, and your children. However, parents/parents-in-law will not be covered under it.

What Are The Exclusions Of Hospital Daily Allowance Coverage?

The hospital's daily allowance is subject to the approval of the claim application. If your claim is not approved, the insurance company will not be liable to pay the daily hospital cash.

Here are a few more examples of Daily Hospital Cash Exclusions

The treatment of pre-existing diseases
Maternity-related expenses
The cost of diagnostic tests before the hospitalisation
Hospitalisation for less than 24 hours

Conclusion

If you have an add-on of hospital daily allowance in your health insurance policy, it is of great help. Especially when you are hospitalised fairly far away from your home or in another city. Non-medical expenses such as food, hotel, and travel can increase significantly in such cases. Hospital daily cash allowance helps you cover these expenses and reduce your overall spending. Therefore, it is a beneficial add-on to have in your health insurance policy.

Frequently Asked Questions

How can I find out if I am eligible for a hospital daily allowance?

You can ask your Human Resources Department to give you an idea about your eligibility regarding daily cash benefits. If you are not eligible you can pay the premium for an add-on separately. You can check the amount of daily allowance and the number of days for hospitalisation so that you can raise the claims.

If I have more than one illness, do I receive multiple hospital daily allowance?

No, only one hospital daily allowance is payable for each day of your hospitalisation regardless of the number of illnesses. You are not eligible to receive more than one daily cash allowance if you have multiple health conditions.

What is the maximum sum insured under the hospital's daily allowance?

The daily cash benefit for hospitalisation is paid irrespective of the actual bills. For example, if your coverage limit in the hospital plan is Rs. 2000 and the actual bill is Rs. 1000, you are still eligible to receive Rs. 2000.

Why should I add hospicash add-on cover to my health insurance plan?

Daily hospital allowance during hospitalisation acts as a safety net for all your non-medical expenses. Food, travel, and stay charges increase when you are hospitalised far from your home or in another city. Hospicash add-on ensures you don't incur additional charges, and keeps your savings safe.

Written by Roocha Kanade

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Reviewed by Dr. Harshita Dahiya

Health Insurance content enthusiast who turns complex topics into easy, binge-worthy reads—fueled by SEO, creativity, and way too much chai! Loves juggling multiple projects, cracking impossible deadlines, and sprinkling humor into the mix. When not geeking out over digital trends, you'll find her lurking on Quora and Reddit, planning the next getaway, or passionately decoding all things health and insurance!