Can You Take Multiple Health Insurance Policies?

Yes, you can take multiple health insurance policies, and in fact, this is good option which most of people are not aware of. In this article, I’ll discuss why having multiple health insurance policies can be beneficial, how they work during claims, and the precautions you should take.

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Why Consider Multiple Health Insurance Policies?

You can buy as many health insurance policies as you want—this is not limited to top-up policies. You can opt for multiple standard health insurance policies from the same or different insurance companies, depending on your needs.

For example-
Ramesh can take two standard base policies, with a ₹5 lakh sum insured—one from Star Health and another from New India Assurance. Here also both policies can be used independently. In this case, Ramesh’s total coverage is ₹10 lakh (₹5 lakh Star Health + ₹5 lakh New India). How? lets understand in detail.

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How Multiple Health Policies Work During Claims

Let’s consider the second scenario where Ramesh has two base policies, each with a ₹5 lakh sum insured. Now claim under multiple policies will be processed as per IRDA stipulated guidelines.

1. Freedom to Choose Insurer
   Ramesh can choose to file his claim with either Star Health or New India Assurance. The chosen insurer must process the claim as per their policy terms and conditions. Insurance company (Star or New India in this case) can’t ask Ramesh to approach the other first.
2. Claim for Disallowed Amounts
   If one insurer disallows part of the claim (e.g., due to sub-limits or exclusions), Ramesh can approach the second insurance company for reimbursement of the disallowed amount, subject to the second policy’s terms. Example:
   • Hospitalization cost: ₹4 lakh.
   • Star Health pays ₹3 lakh (due to sub-limits).
   • Ramesh can claim the remaining ₹1 lakh from New India Assurance.
3. Claim Exceeding One Policy’s Limit
   If the claim amount exceeds the sum insured of one policy, Ramesh can claim the balance from the second policy. Example:
   • Hospitalization cost: ₹7 lakh.
   • Ramesh can claim ₹5 lakh from Star Health and the remaining ₹2 lakh from New India.
4. No Overcompensation
   Regardless of the number of policies, Ramesh cannot claim more than the actual hospitalization cost. Insurance works on the principle of indemnity, ensuring reimbursement of the loss but no profit.

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Advantages of Multiple Health Insurance Policies

1. Increased Coverage
   Combining policies gives you a higher coverage limit, allowing you to tackle large hospitalization expenses. A single policy with a large sum insured also provides coverage, but having multiple policies offers additional advantages that a single policy might not.
2. Flexibility in Claims
   If one insurance company disallows part of a claim (e.g., due to surgeon fees exceeding the reasonable limit), you can approach the other insurer for reimbursement. Chances of payment of disallowed amount are higher in case of multiple policies.
3. Backup for Cashless Denials
   If one insurer denies cashless hospitalization (e.g., due to insufficient prior medical history or any other reason), you can approach the second insurer for approval.
4. Coverage for Sub-Limits
   Some policies have sub-limits for specific treatments (e.g., room rent). The second policy can cover expenses exceeding these sub-limits.
5. Spread of Risk
   High-value claims are more likely to be approved when split across multiple insurers, as each insurer bears a smaller liability.
6. Customizable Coverage
   You can combine a standard health policy with a disease-specific plan (e.g., for chronic conditions), ensuring affordable premiums and better coverage.

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Precautions and Documentation for Claims

When claiming from multiple policies:

1. After one insurer settles the claim, obtain a settlement letter and stamped original bills from them.
2. Submit these documents to the second insurer along with the claim form.
3. Maintain proper documentation of both policies to avoid delays or confusion.

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Final Thoughts

While managing multiple health insurance policies might seem like a hassle, it can provide significant benefits during a medical emergency. The flexibility and additional coverage can help you avoid out-of-pocket expenses and ensure that your medical needs are fully met. Whether you choose a single high-coverage policy or multiple policies depends on your preferences, but the latter often proves more advantageous in real-life scenarios.