Home Insurance What is Insurance Reimbursement?

What is Insurance Reimbursement?

52
1
SHARE
Insurance Reimbursement

Insurance reimbursement

The dictionary meaning of reimbursement says “compensation paid for the damage, losses or money already spent. Well, the dictionary meaning holds true in this case also. An insurance reimbursement is “first you pay the amount from your own pocket for the losses incurred and the insurer will reimburse you”, according to the conventions of the insurance plan you have chosen.

Benefits of Insurance Reimbursement

  • You can choose your desired hospital at your desired location if it’s a health insurance or you can choose your desired spare part for your automobile in case of auto insurance.
  • Less premium to be paid compared to the Cashless Insurance policy
  • You do not have to carry any special documents for your urgent hospital needs which are required in case of Cashless Insurance policy

Of course there is a disadvantage too; you should have cash ready always to meet the unforeseen situation to pay for the bills. It’s not a problem if you care for little premium rates. And it takes time for reimbursement to get approved and finally to get cash to your hand.

Note: Please collect and hold record of all the bills, receipts and other documents required to get the reimbursement.

Recommended Read :

1 COMMENT

  1. Insurance reimbursement is one in which first the insured person has to pay for all damages caused and later he claims for the amount spent by him and the money is reimbursed by the insurance company. It is beneficial in case of health insurance and automobile insurance, hospital and spare parts can be chosen as per applicant’s desire. It also has low premium as compared to others. Both applicants have to keep money ready for unforeseen situations.

Comments are closed.