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Terms and conditions
Terms and conditions
Are you finding it difficult to understand all the complicated terms and jargon used in health insurance? Don’t worry you’re not alone. We understand that it can be trying to read 50-something page insurance documents.
But don’t worry, we’re here to make insurance simple for you. We can help you be prepared with some important terms you need to know before buying health insurance.
And one important term you must know is Sum Insured.
Sum Insured (SI) is the maximum amount that is provided to you (the insured) in case you make a claim due to a medical emergency, treatment for illness, etc. It is directly based on the concept of indemnity. So, when you make a claim, you will get a reimbursement of the costs spent on the medical treatment.
If the cost of the treatment is less than or equal to the sum insured, the entire bill amount will be covered by the insurance company.
But, in case the costs of treatment or hospitalization exceed the sum insured, you will have to bear the extra cost beyond the SI yourself.
In short, the sum insured is an indemnity-based reimbursement you can get in case you make a claim with your health insurer.
All non-life insurance like health insurance, home insurance, motor insurance, etc. offers this sum insured.
There are many ways that you can increase your sum insured:
Important: Learn more about Coronavirus Health Insurance
It is very important to use the right sum insured for your policy. Just think of this example. You just bought a health insurance policy that covers a lot of illnesses and treatments, and you are happy that you have protection. Then comes a situation when you are in a medical crisis and the expenses are too much for you to handle.
You make a claim, but then you are shocked to find out that the sum insured paid by the insurer doesn’t cover all of your medical expenses! This means that you would have to end up paying a lot from your pocket and spend all your savings. Stressful, right?
Yes, you did right in buying a health insurance, but were you really careful in selecting the right sum insured? The answer is no. It is very important to choose the right sum insured to avoid such situations and to let your insurer pay the maximum amount in case of a claim. This way you get some peace of mind, and your savings are intact for the future.
Decide what amount is right for your sum insured based on the following factors:
A second important term often used is, Sum Assured. This is a fixed amount you will receive at the end of term insurance. It is often used in Life Insurance policies.
In other words, the sum assured is the amount you initially signed up for, this is the original amount that’s guaranteed to come to you or your beneficiary. The sum assured amount remains unchanged at the end of your policy tenure, it is a pre-determined benefit that the insured will receive.
For example, a life insurance policy may have the Sum Assured limit as ₹15 lakhs in case of death, which means that in case of a such an event, the person’s nominees will be given an assured sum of ₹15 Lakhs.
Sum Insured |
Sum Assured |
Sum insured is the value applied to Non-life insurance. |
Sum assured is the value applied to Life insurance policies. |
It basically is based on the principle of indemnity, that provides a reimbursement/ compensation to damage/loss. |
It is that fixed amount that the insurer pays the policyholder in case of an eventuality. |
There is no monetary benefit rewarded, its reimbursement as per the Sum Insured. |
Sum assured is a monetary benefit that is given to the insured or his/her family after policy’s term is up. |
We hope you got a fair idea about the Sum Insured and Sum Assured. Choose the right sum insured to make the most of your insurance policy. Be aware and make a wise decision for your future.
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Disclaimer #1: *Customer can choose options at the time of availing insurance. Premium amount may vary accordingly. Insured is required to disclose any pre-existing condition or on going treatment before policy issuance in the proposal form.
Disclaimer #2: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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Author: Team Digit
Last updated: 22-10-2024
CIN: U66010PN2016PLC167410, IRDAI Reg. No. 158.
Go Digit General Insurance Limited (formerly known as Oben General Insurance Ltd.) - Registered Office Address - 1 to 6 floors, Ananta One (AR One), Pride Hotel Lane, Narveer Tanaji Wadi, City Survey No.1579, Shivaji Nagar, Pune-411005, Maharashtra | Corporate Office Address - Atlantis, 95, 4th B Cross Road, Koramangala Industrial Layout, 5th Block, Bengaluru-560095, Karnataka | Trade logo of Go Digit General Insurance Ltd. displayed above belongs to Go Digit lnfoworks Services Private Limited and is provided and used by Go Digit General Insurance Ltd. under license.