Tata AIG offers health plan with life cover

Tata AIG Life Insurance on Wednesday announced the launch of Tata AIG HealthFirst -- a health insurance plan with life cover. The plan provides cover for prolonged hospitalisation including major surgery or critical illness.

One of the features of the policy is that a lump sum allowance is paid irrespective of the actual medical/hospitalisation expenses. The policy is renewable till 65 years of age without any further medical examination with premium increasing only once every five years.

"The customer will get a defined level of benefit which is irrespective of the actual hospital expenses incurred. Also this policy can be redeemed simultaneously with the exiting medical policy," said Tata AIG's managing director Ian Watts.

Tata AIG has tied up with Paramount Health Care to avail of its services as a third-party administrator.

The policy holder can make multiple claims till his lifetime cover is exhausted. It also has an in-built death cover, on the event of death of a policy holder.

The plan provides the policy holder with a hospitalisation allowance of up to Rs 2,500 per day depending on the number of units purchased.

This allowance is available after the first three days of hospitalisation for maximum of 90 days. For surgical benefits the plan is offering a maximum amount of Rs 1,25,000. The complete amount of allowance would be paid even if the actual operation cost is just Rs 10,000.

The policy also offers a collective amount of Rs 12,50,000 as critical illness cover.

The policy is however different from the MediClaim policy which is being offered. In the HealthFirst policy, patients will have to pay the money and Tata AIG will subsequently pay the customer.