Importance of Maternity Health Insurance for Women in India

With a fertility rate of 2.3, India ranks 94 in the list of 200 countries. As many as 34 infants are born every minute in this country, with a substantial number of parents opting for private medical facilities rather than public alternatives.

While the expenses to regular procedures in such institutions can range from Rs. 30,000 to Rs. 60,000, a caesarean section can cost up to Rs. 50,000 to Rs. 2 Lakh. There are several expenses that also arise not only after but also before hospitalisation.

The expenses to having a child has become one of the primary factors that couples are considering before conceiving in this country.

However, maternity insurance covers are gradually reducing the need for monetary considerations in case of to-be parents.

How does a maternity policy help?

A maternity policy covers all the expenses associated with childbirth (after conceiving). The coverage includes normal and C-section delivery, along with pre-natal and post-natal expenses.

Taking the help of a maternity cover reduces the financial burden drastically. Some policies cover the majority portion of the related expenses, thereby decreasing the need for utilising savings or investment.

What are the benefits of a maternity insurance policy?

Some of the benefits and features of top standard maternity insurance policies include:

1. Hospitalisation costs

These policies will also provide financial coverage for expenses bed rent, medicines, delivery, and any costs during hospitalisation.

Such coverage is crucial, especially in cases of pregnancy complications. India ranks number one on preterm birth with more than 3.5 million babies born each year prematurely according to the WHO. In such cases, newborns have to be kept in a neonatal intensive care unit (NICU) in an incubator. Expenses in such conditions can be in excess of Rs. 40,000 due to prolonged observation that of 20 days or more.

2. Cashless facility

A pregnancy health insurance cover with cashless facility enables the insurer to avail healthcare from a medical facility without the need to pay any cash for the services rendered. This facility is only available from healthcare centres networked with the insurance company. A third-party administrator (TPA) of the insurance provider acts as the coordinator between the company and the hospital in this case.

A single point of contact makes it hassle-free to make claims when insurers opt for a non-network hospital.

3. Coverage for newborns

Availing this insurance policy is exceptionally beneficial as it covers the new-born baby in case he/she is diagnosed with a critical disorder.

4. Pre and post hospitalisation expenses

A maternity insurance policy covers all costs incurred 30 days before and 60 days after hospitalisation.

5. Cumulative bonus

Insurers can avail a 10% cumulative bonus every year when they don’t make a claim.

6. Income tax benefits

One of the significant benefits of a maternity insurance policy is income tax exemptions. These policies enable customers to claim income tax deductions of up to Rs. 60,000 under Section 80D of the Income Tax Act.

Lastly, one of the other benefits of a maternity policy is the coverage it provides for ambulance charges.

Also, NBFCs like Bajaj Finserv provide pregnancy complications plans for expecting mothers. The cover offers a coverage up to Rs. 50,000 at a premium of just Rs. 499. The cover can act as a rescuer in case of any complication that may arise during pregnancy.

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