Posted July 25, 2000
Article and Research by our Indian Correspondent.

Please Note : The Law Office of Sheela Murthy, P.C. and MurthyDotCom do not endorse or recommend the insurance companies listed here, but provide the names of these companies only for the convenience of our readers to begin their research on this topic.

Where to Look : Four major public sector corporations, namely Oriental, New India, National, and United are the only companies allowed to operate in the regulated general insurance sector. Their coverage ranges from fire and marine insurance to miscellaneous services. Medical insurance for travelers to the U.S. falls under this last category. You could get the policy by dealing directly with these behemoths but this is definitely not recommended. You will get far better service from any one of the authorized agents listed in the concerned-city yellow pages directory. These being competitive businesses you get personalized attention, a pleasant attitude at pretty much the same cost (you might even chance upon a small discount).

What You'll Find : There are broadly two categories in overseas mediclaim policies :

1. Either applicable the world over including the U.S. and Canada or
2. Applicable the world over excluding the U.S. and Canada.

Its worth noting that policies which include the U.S. and Canada are significantly more expensive, owing largely to the high cost of medical attention in these countries. We shall remain focused on medical insurance coverage for travelers from India to the U.S. (while discussing rates and suchlike) for the purposes of this article.

What They are Willing to Cover : The policies do not cover pre-existence of diseases / illnesses: For example, a heart patient will have to declare he is one and his policy will not cover those expenses incurred which are cardiac in nature. And if he were to develop a kidney problem, which gets diagnosed as resultant from his heart condition, the policy will not cover those kidney-related expenses either. Indian underwriters do include the related illness clause but the higher premium they charge will vary according to the condition / exigencies covered and other related information like the age of the insured and the extent of illness.

The Policies Offered : All the companies offer identical options and cost break-ups, either directly or via their agents, so any confusion stemming from too many variations is avoided. The choice is between :

Overseas Mediclaim : This policy is about 20% cheaper than the other one we are going to discuss further ahead - but it covers only the medical expenses arising out of an accident or illness overseas up to a limit of USD50,000. It is a largely outdated policy and not recommended since there is a world of difference in the coverage offered by the (one) other option which is :

Videsh Yatra Mitra Policy : This is a very comprehensive policy which offers an umbrella of coverage - it has largely been responsible for making Overseas Mediclaim obsolete and avoidable. With VYM you get a package which includes :

Personal Accident Coverage inclusive of death (though if the insured is less than 16 years of age the compensation amount is only USD2,000 as opposed to the USD25,000 given on the accidental death of a holder over 16 years of age). It also has a similar amount available to anyone who has suffered an irreversible loss of limbs or eyesight.

• Medical expenses to the extent of USD5,00,000 are covered.
  

• Loss of checked baggage on international flights can garner a compensation of USD 1,000.
  

• Delay of checked baggage gets a similar coverage.
  

• Loss of passport is covered with an USD250 compensation.
  

• Third party personal liability (say someone sues you for rash driving/perceived injury caused) you are covered beyond the first USD200 of costs arising thereof (less than or equal to 200 dollars you will have to pay, regardless of your policy).

It would pay to remain alert and well informed about the details of the policy you choose - it wouldn't be wise to be lured by less than scrupulous agents/a misplaced sense of thrift. Yes, the VYM policy is costs a higher amount but its worth far more than the marginally differential premium.

What You Pay and Why : The premiums you pay depend on the age and the duration for which you expect to be in the United States.

The following table gives a glimpse of the charges for a trip that lasts less than 14 days :

Over 70 years : Coverage is available only after the agent / company has received case-specific approval from Mercury International who are the London-based settling agents. It's normally a mentioned formality and the coverage is usually available hassle-free from any good agent on the payment of an additional surcharge of 50% (over the INR1047 a 61-70 year old pays). It also requires the production of a general fitness certificate from a certified medical practitioner with at least a MD degree.

As the duration of the stay increases, so does the premium. A 6-month to 40 year old pays INR1862 for a stay extending up to 90 days and INR3162 for a 91 to 120 day stay and so on for the other age groups.

Please note a 5% government service tax is payable on these premium rates.

With a policy in hand you only pay USD100 of the total hospital bill (if hospitalized) - the policy takes care of the rest while you have the freedom to check out.

Anyone over forty years of age has to submit his/her ECG and blood sugar level reports while taking out the policy (for the rest of the world, excepting the U.S. and Canada, the same is required only for those over the age of sixty).

Conclusion : Your medical insurance policy is a very important document, which could take care of you when you need help most. Availing of it before leaving India makes a lot of economic sense too since you are saving on your dollar expenditure and also paying roughly less than half of what you would pay for a similar policy in the U.S. Just don't leave the country without it!



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