There are two types of health insurance plans: indemnity and defined benefit plans.
A basic health insurance policy that pays for your hospitalisation expenses is an indemnity product. It pays for your hospital bills up to the sum insured. This coverage also includes pre- and post-hospitalisation expenses and listed day-care procedures.
A defined benefit policy, on the other hand, pays a stipulated sum on an insured event. Both life and non-life companies can offer defined benefit plans.
