What is a Cancer Insurance?
The Cancer Insurance Policy offers coverage towards the costs of diagnosis biopsy, surgery, chemotherapy and/or radiotherapy, hospitalization and rehabilitation.
Cancer Covers available in India?
In India there are three types of insurance plans: Specialised Cancer Insurance Plans, General Health Insurance Plans or Mediclaim (which also cover cancer apart from other health coverage) and Critical Health Insurance Plans.
Here, we are only focusing on the Specialised Cancer Insurance Plans, which are specially designed for cancer cover.
1- Indian Cancer Society
Indian Cancer Society’s Cancer Insurance Scheme was the first Cancer Insurance Scheme in India, launched in 1985. ICS is currently offering two cancer insurance products:
A- Cancer Insurance in joint initiative with Raheja QBE Insurance:
A- Who can buy: All individuals in the age group of 1 day to 70 years can buy this insurance cover.
B- This offers a combination of Benefit & Reimbursement cover
B- Sum Insured options: Rs. 1 lakh and in multiples thereof subject to maximum of Rs. 10 lakhs
C- Covers all types of Cancer (Except Cancer caused in presence of HIV)
D- How to apply: Download Proposal Form and submit it to ICS.
B- Cancer Insurance in joint initiative with New India Assurance:
A- Who can buy – All individuals in the age group of 15 years to 70 years can buy this insurance cover. Members spouse can be covered without additional premium. However only one will be entitled to claim. You can also cover your children as dependents. But your child should be of minimum 1 year and maximum 20 years in order to add them as a dependent.
B- Sum Insured Options – Rs. 50,000/- or Rs. 2 lakhs at very nominal premiums.
C- If cancer is detected within the first 3 months or (90 days) of buying an insurance policy then your cover is terminated
D- Every quarter claims are reimbursed and that too until the entire sum is exhausted
E- How to apply: Download Proposal Form and submit it to ICS.
2- Cancer Patients Aid Association
In 1994, CPAA introduced the Cancer Insurance Policy in collaboration with New India Assurance Company. The only caveat to buy this insurance plan is that the person should not be a current or potential cancer patient. So before buying the proposer must first undergo a mandatory free check up at one of the CPAA’s Cancer Detection Centres. If the individual is found to be symptom-less as per the screening procedure, they are then enrolled under the scheme.
A- Sum Assured Options: Rs. 30 Thousands – 2 Lakhs
B- A cumulative bonus payable to the policy holder shall be increased by 5% on the sum assured for every year during which the policy has been in force prior to claim but this increase will not exceed 50% of the sum insured.
C- In standard policy – once a policyholder contracted cancer, therefore, he was unable to renew his insurance in subsequent years, as the ailment was no longer a fortuity. This meant that the patient could only get one claim and could not get ongoing medical reimbursement for treatment, which generally spans several years. In the case of the Cancer Insurance Policy, however, CPAA helped to overcome this drawback and a novel arrangement has been forged whereby the insured person is covered for the longer term. This means that the policyholder has the benefit of a fresh limit every year to take care of his treatment expenses.
D- How to apply: Contact CPAA (firstname.lastname@example.org or call +91 22 24924000 / +91 22 24921856 / +91 22 24928775). Only available to Mumbai local residents.
1- The policy also provide a free annual check-up cover at CPAA facilities.
2- CPAA also undertakes to pay premiums in a timely manner before the expiry of the policy so that the policyholder holds a current policy at all times
3- CPAA behaves like an intermediary between the patient and Insurance Company to ensure that it is settled quickly.
4- 80G certificate for 50% tax exemption will be provided.
3- HDFC Life Cancer Care Plan
Comprehensive Cancer Care plan that offers lump sum benefit on diagnosis of Early Stage and Major Cancer
A- Flexibility to choose from 3 plan options with varied benefits (Silver, Gold & Platinum Options)
B- Waiver of Premium Benefit in case of diagnosis of Early Stage Cancer
C- No pre-policy medical test required
D- Entry age 18-65 years
E- Sum Assured Options: Rs. 10 Lakh – 40 Lakhs
F- Policy term is 10-20 years, subject to maximum maturity age 75 years
G- In case of no claims, the Sum Insured increases by 10% annually under Gold and Platinum Option
H- Monthly Income of five years in case of diagnosis of Major Cancer under Platinum Option
I- Get Premium discounts for Sum Insured above Rs 10 Lakhs
J- Get premium discount (upto 5.5%) for policies bought online.
K- To buy the policy, an individual has to answer eight questions on the proposal form that range from smoking habits, presence of any major diseases like HIV/AIDS, tumor apart from whether the customers’ parents or sibling suffered from cancer before reaching the age of 60 years. If all the answers are negative (No), then the prospect can buy a policy. No medical test is required.
L- Up to 100% of Sum Assured paid on of diagnosis of Cancer
M- Only 7-day survival (waiting) period from diagnosis required to claim for benefit payout
4- Raheja CANCER INSURANCE
This Cancer Insurance Product is a joint initiative with the Indian Cancer Society. A mix of indemnity and benefit covers, this policy can cover individuals age one day to seventy years. Needless to mention that it attracts Income Tax benefits under Section 80 D of the Income Tax Act.
What the Policy covers?
A- All individuals in the age group of 1 day to 70 years can opt for this insurance cover with Raheja QBE.
B- In case an Insured is diagnosed with Cancer and this requires diagnostic investigation or treatment by a duly qualified medical practitioner or surgeon, Raheja QBE pays the Insured:
a- 50% of the Sum Insured or Rs. 250,000.00 whichever is less, as a lump sum amount on the acceptance of a claim under the Policy; and
b- Reasonable and necessary medical expenses actually incurred by the Insured in the diagnostic investigation or medical treatment of Cancer as recommended by a registered medical practitioner, in excess of 75% of the amount paid as a lump sum as stated above.
What the Policy does not cover?
The policy does not cover any actual or alleged liability arising:
A- Any injury, disease or illness directly or indirectly caused or contributed by nuclear weapons, or caused by contact of the insured person with radiation or radioactivity from any source whatsoever from non diagnostic or therapeutic source.
B- Any cancer or cancer related condition(s) for which the Insured had signs or symptoms and was diagnosed and received medical advice/treatment, within 48 months prior to his/her first policy with Raheja QBE
C- Any representations on the basis of which this Policy is issued is discovered to be fraudulent or incorrect or if any fraudulent means or devices are adopted any time in making any claim under or in respect of this Policy.
D- Any claim where the diagnostic investigation does not reveal the positive existence or presence of Cancer
Tax Rebate:(Section 80DDB)
Medical treatment of specified ailments under section 80DDB – Deductions of expenses on medical treatment of specified ailments (such as AIDS, cancer and neurological diseases) can be claimed under Section 80DDB. The maximum amount of deduction allowed from gross total income is restricted to Rs 40,000 (which goes up to Rs 60,000 if the age of the person treated is 60 years or more) on condition that no medical reimbursement is received from any insurance company or employer for this amount. In case of reimbursement the amount paid should be reduced by the amount received if any under insurance from an insurerer or reimbursed by an employer.
You could also contact following providers for cancer financial aid.