Difference Between Riders and Add-on Covers in Health Insurance

When purchasing health insurance in India, understanding the differences between riders and add-on covers can significantly enhance your policy's effectiveness. Both options offer ways to expand your coverage, but they serve different purposes and operate under distinct conditions. This blog will get into these differences, providing a comprehensive guide to help you make an informed decision.

What are Riders in Health Insurance?

Health insurance riders are additional benefits that you can purchase alongside your base health insurance policy. He?lth ?nsur?nce r?ders ?re des?gned to ?mend the terms ?nd cond?t?ons of the or?g?n?l pol?cy, prov?d?ng extr? cover?ge t??lored to spec?f?c needs. Here are some common rider options available with health insurance policies in India:

Common Rider Options Available with Health Insurance Policies in India

1. Hospital Cash Rider

The hospital cash rider of Bajaj Allianz offers a fixed daily allowance during hospitalisation, covering incidental expenses that are not typically included in the base policy. The benefit usually kicks in after a minimum hospitalisation period of 24 hours and the amount varies from plan to plan.

2. Critical Illness Rider

A critical illness health insurance rider provides a lump sum payment upon the diagnosis of specified critical illnesses such as cancer, heart attack, or stroke. This payment can be used for medical treatments or any other expenses incurred during the illness.

3. Maternity Cover Rider

This rider covers the costs associated with childbirth, including pre and postnatal expenses. It can be particularly beneficial for young families planning to have children. Typically, there is a waiting period before this cover becomes active, which varies between insurers.

4. Accident Disability Rider

In case of an accident leading to partial or total disability, this rider provides financial compensation. The amount paid depends on the severity of the disability. For instance, complete loss of eyesight or limbs would result in the full sum insured being paid out, while partial disabilities receive a proportionate amount.

5. Waiver of Room Rent

Health insurance policies often have caps on room rent, limiting the types of hospital rooms you can opt for. This rider allows you to waive those limits, giving you the flexibility to choose any room without incurring additional charges.

What is Add on Cover in Health Insurance?

An add-on cover in health insurance is an additional feature that can be attached to a basic health insurance plan to enhance the coverage. These add-ons are designed to provide extra protection for specific health needs or conditions that the standard policy may not cover. For instance, critical illness cover offers a lump sum amount in case of severe illnesses like cancer or heart attacks, while personal accident cover ensures financial assistance in case of accidental injuries or death. Other add-ons, such as hospital cash cover or maternity benefits, help manage hospital-related expenses or cover delivery costs. By opting for these add-ons, policyholders can tailor their health insurance to suit their specific requirements and ensure comprehensive protection.

Common Rider Options Available with Health Insurance Policies in India

1. Maternity Cover

Similar to the maternity rider, this add-on covers pre and postnatal expenses, childbirth, hospitalisation, and ambulance charges. It can be added to both individual and family health insurance plans.

2. Critical Illness Cover

This add-on from Bajaj Allianz provides a lump sum payment upon the diagnosis of critical illnesses. It can be purchased either as an add-on or a standalone policy, providing financial support during severe health crises.

3. Personal Accident Cover

Th?s cover (Person?l ?cc?dent Cover) typ?c?lly offers ? comb?n?t?on of benef?ts, ?nclud?ng lump sum p?yments for de?th or d?s?b?l?ty, re?mbursement for med?c?l expenses, ?nd somet?mes even weekly benef?ts dur?ng hosp?t?l?z?t?on due to ?n ?cc?dent.

4. Daily Cash Allowance

Hospitalisation can lead to unexpected daily expenses. This add-on provides a fixed daily cash amount for each day of hospitalisation, covering costs like food and transportation.

5. Home Healthcare Cover

This add-on covers medical treatment at home, including doctor visits, diagnostic tests, and nursing charges. It ensures that you receive the necessary care without needing to visit a hospital.

6. Ayurvedic/Homoeopathic Cover

For those who prefer alternative treatments, Bajaj Allianz cover provides financial support for Ayurvedic and Homoeopathic treatments, including consultation fees, diagnostic tests, and treatment charges.

7. Restoration of the Sum Insured

This add-on restores the sum insured once it is exhausted, ensuring that you have continuous coverage even after a significant medical expense.

8. OPD Cover

This cover reimburses expenses for outpatient consultations and follow-up visits, which can be particularly beneficial for managing chronic conditions that require regular doctor visits.

9. Health Prime Rider

This add-on from Bajaj Allianz allows for consultations through telephone or video calls and covers in-person visits to network hospitals, including tests and annual health check-ups.

10. Room Rent Waiver

This add-on either increases the room rent limit or completely waives it, allowing you to choose a private room without worrying about additional costs. Also Read: Health Insurance Add-Ons Covers – All You Need To Know

Key Differences Between Riders and Add-on Covers

Understanding the differences between riders and add-on covers can help you choose the right enhancements for your health insurance policy. Here are the main distinctions:

Conclusion

Choosing the right health insurance enhancements—whether riders or health insurance add-ons—depends on your specific needs and financial situation. Riders offer a way to amend and enhance your existing policy, while add-on covers provide separate, additional benefits. Understanding these differences ensures that you can make an informed decision, securing the best possible protection for your health and financial well-being. Also Read: Waiting Period in Health Insurance

FAQs

Can you add a rider to an existing health insurance policy?

Yes, many insurers allow adding riders to existing health insurance policies to enhance coverage, offering benefits like critical illness or maternity coverage.

How many insurance can one person take?

A person can hold multiple health insurance policies to increase coverage or fill gaps in their existing plans.

What is the purpose of add-ons?

Add-ons or riders enhance a health insurance policy by providing additional coverage, such as critical illness or accident benefits, offering tailored protection. *Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.