Cashless denied? Swipe card, go for secured loans

A recent survey by Policybazaar.com found that many people with health insurance policies face challenges when denied the cashless facility and forced to make upfront payments at hospitals.

- SANJAY KUMAR SINGH & KARTHIK JEROME

About 70 per cent of reimbursement claimants reported taking loans from formal or informal sources or dipping into savings meant for other life goals.

When is cashless not available?

One scenario is when the patient seeks treatment at a hospital that is not part of the insurer's network. The Insurance Regulatory and Development Authority of India (Irdai) recently launched the "Cashless Anywhere" facility but it is in its infancy.

Another scenario can arise even at a network hospital. "If the policy was purchased recently and a claim for a major disease arises, the insurer would want time to investigate. It could ask the customer to file for reimbursement," says Siddharth Singhal, business head-health insurance, Policybazaar.com.