Hospitalisation Insurance (H&S)
Asked on 10 Oct 2019
If I'm going be hospitalised and I have both personal and corporate insurance (one from NTUC Income, one from AIA), would I be able to double claim?
No. Insurance is meant to restore you to your previous financial standing prior to a catastrophic event. It is not meant to be profited from. Especially in the case of hospitalization, if you double claim, one of the insurers will have the right to go to the other insurer to recover the difference.
This is different in the case of insurance such as term/CI/TPD whereby you are paying an amount for a certain level of cover. So if you want more cover, you just need to pay more premiums. Naturally, the level of cover is determined by you and your advisor and is intended to restore your financial position prior to the event, based on your numbers.
Hospitalisation claims are on a reimbursement basis. So only 1 claim will be paid out.
However some corporate plans allow for the deductible and co insurance claims, and if you don't have provisions to cover that on your personal policy, you may be able to claim those 2 benefits from your corporate policy.
Generally, there are two types of insurance payout when you buy them
(1) Sum assured - these are assured amounts that should any of the conditions are met, they payout the coverage that is in the contract. These are commonly life insurance / CI insurance / Disability insurance
(2) reimbursement - more commonly in the insurance industry, which spans from general insurance to building insurance, hospitalisation and accident. These only payouts with claims (which is meant to bring you back to the original state).
So on your point about "double claim", buying a few policies allow you to claim from different parties. But they will share the cost of the insurance together (at their own discussion). You will be reimbursed based on the coverage each one cover. They are able to fill the gap if you bought multiple ones with different policy wordings.
What is common over here is if you have corporate and personal, they will complement each other in their coverage. I would not go into portability as some have mentioned.
In short, reimbursement is different from the sum assured, and you will only be reimbursed the total lost, and not "profit" from double claim.
It's sufficiently answered by the 2 gurus already, but there is actually one benefit that allows you for a double claim.
Hospital income. That's it. Any expenses are on a reimbursement basis, but any benefit is stackable. Hospital income is a benefit, hence is stackable.
PROVIDED there is this benefit in both your personal and corporate hospital plan.
Now to add on with some information that doesn't directly answer the question:
You may now be tempted to then not purchase a personal hospitalisation insurance due to several reasons:
"I already have a plan with my company what? Why need another one"
And some things for you to consider if you were to decide on whether to keep your personal hospitalisation insurance:
Portability of corporate insurance: While some company insurance is portable even when you leave the company, most of them laspe once you leave the company. Example – the Transferable Medical Insurance Scheme which is a group insurance that has inpatient coverage up to a maximum period of 12 months when an employee leaves his employment.
Coverage of corporate insurance: Most corporate insurance will have claim limits imposed on them. In the unfortunate scenario where you reach your claim limit of your corporate insurance, you will be left to deal with the expenses alone.
Retirement plans: If you intend to retire with a hospitalisation plan, get your own one. Your company likely will not cover for you once you retire.
Yes to a few types of hospital claims. No to most hospital policies.
There is a policy feature known as... Hospital Cash or Hospital Income or Hospital Stay or something similar along the line. It pays you a cash amount (for example $50, or $100, or $150) for every day you stay in the hospital.
You can have many policies and each policy still pay you. Even if they are from the same insurer or from different insurers.
An example, you may bought an Accident plan that has hospital cash, and your shield also has a hospital cash component, and then u bought from another company another hospital cash.. so 3 policies pay u 3 hospital cash for every day you are hospitalised.