Organ donation involves two individuals, one who is ill and needs a healthy organ to carry on a semblance of normal life (the recipient) and the other who is healthy and motivated by affection or money to donate a healthy organ (the donor). Organ transplantation itself is a major surgical procedure and both the donor and the recipient require hospitalization. Health insurance policies cover hospitalization, but the lines start to blur when organ transplant is involved. Let us first look at this from the recipient’s perspective. If the recipient has a health insurance policy, his policy will usually cover all hospitalization expenses incurred by him and any such expenses incurred by him as part of the transplantation procedure will be covered. It is important to note that the cost of the donated organ is normally never covered. If the recipient’s policy does not have a clause that covers hospitalization expenses for the donor, the donor’s hospitalization expense will have to be picked up by the recipient. There are several policies in India that cover the donor’s expenses as well.