Your health insurance cover not enough? How to get interest-free loan during medical emergency

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Published: September 23, 2019 5:16:27 PM

To cover the risk of paying uncertain medical bills at private hospitals, people take medical insurance by paying a certain amount of premium, which is known and can be paid with ease.

healthcare expenses, health insurance, hospital bills, uncertainty over hospital bills, hospitalisation expenses, network hospitals, interest-free loan, CareCoverHealth insurance policies cover only diseases and accidental injury cases.

Due to inadequate number of government hospitals, a person either needs to spend lots of time and efforts to stand in long queues in crowded state-run health facilities or pay hefty bills of private hospitals, where the rate of increase in healthcare costs is much higher than the average rate of inflation. In today’s fast life, people, especially those working in the private sector, don’t have time and adequate leave to visit government hospitals for weeks and months and hence face the risk of paying exorbitant bills of private hospitals, which may exceed his/her paying capacity.

To cover the risk of paying uncertain medical bills at private hospitals, people take medical insurance by paying a certain amount of premium, which is known and can be paid with ease.

However, health insurance policies cover only diseases and accidental injury cases and most insurers don’t cover maternity and other conditions, which are not treated as disease or illness, even as these involve a lot of cost in private hospitals.

Although, some insurance companies pay a fixed amount on the basis of certain percentage of basic sum insured for child birth and other conditions, but the amount may prove inadequate.

So, what should a person do to pay an exorbitantly high hospital bill if the person either don’t have any health insurance cover or the insurance money received is too less?

To solve the problem, CareCover has come up with a unique concept of providing interest-free loan up to Rs 5 lakh to holders of its Medical OPEX Finance Card, annual fee for which is between Rs 999 to Rs 1,999 depending on the number of family members covered.

Moreover, there is no medical check-up required at the time of acquiring the card, as it covers all pre-existing illnesses of the customers.

Depending on eligibility, which is calculated on the basis of CIBIL score and ability to pay back, CareCover offers loans up to Rs 5 lakh for treatment in its network of 1800+ hospitals, which includes many of the country’s top facilities.

“Through bank statements, we estimate the financial capacity of the card holder to pay EMIs which in turn decides his limit,” said Nivesh Khandelwal, Co-founder, CareCover.

The most attractive part is that the rate of interest is 0 per cent for first 12 month. However, in case a customer is not able to repay the loan in 12 months, the EMI limit is set according to the salary of the customer and nominal interest rate of 1.5 per cent is charged per month from 13th month onwards. However, no leniency is shown to willful defaulters.

“We extend help to the borrower to make his EMIs affordable if he is unable to pay back due to an impact in his income. This may involve restructuring his loan to lower his EMI,” said Khandelwal, adding, “In case the person is not willing to repay the loan, we unfortunately have to explore legal options as mandated by law.”

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