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Vaibhav Kathju, CEO of Inka Insurance, stresses the importance of covering non-hospitalisation expenses in health risks.
Critical illnesses such as cancer, cardiac conditions, and neurological disorders frequently require treatment beyond the capabilities of local healthcare facilities.
Authored by Vaibhav Kathju, CEO and Founder, Inka Insurance: When we speak of financial risk arising from health-related issues, the immediate association is often with hospitalisation expenses. These include admission fees, surgery costs, diagnostic tests, and medication, all of which are significant. However, these visible costs represent only a fraction of the actual financial impact of a serious illness. What remains largely unacknowledged are the non-hospitalisation expenses costs that are often unforeseen, unplanned for, and inadequately insured.
Critical illnesses such as cancer, cardiac conditions, and neurological disorders frequently require treatment beyond the capabilities of local healthcare facilities. Patients may need to seek advanced care in metropolitan centres or even abroad. This brings with it a wide range of ancillary expenses, airfare or rail travel, temporary accommodation for the patient and accompanying family members, meals, local transport, and other logistical costs. While these are not medical in a clinical sense, they are essential to accessing and completing treatment effectively.
Moreover, the financial impact extends beyond logistics. The emotional and physical toll of illness often forces caregivers, typically family members, to take extended time off from work. In cases where the patient is the sole or primary breadwinner, the loss of income during treatment and recovery can place immense pressure on the household’s financial stability. Professionals in high-dependency roles, such as pilots, surgeons, or entrepreneurs, may be unable to return to work for prolonged periods, compounding the income disruption.
To understand the real magnitude of non-hospitalisation expenses, consider this comparison: a typical hospitalisation for a cardiac procedure might cost ₹4 to ₹5 lakhs, and this is usually covered by a standard health insurance policy. However, for families who must travel to another city for treatment, non-hospital expenses can add up to an additional ₹2 to ₹3 lakhs or even more when factoring in stay, travel, food, and ancillary care. Further, if income is disrupted over several months, the opportunity cost can be equivalent to multiple lakhs of lost earnings, which no conventional health plan addresses.
This is where traditional health insurance reveals a critical gap. While it provides financial protection against direct medical costs, it leaves the policyholder to manage non-medical expenses on their own. Recognising this unmet need, crisis cover benefit plans have gained prominence. These plans are designed to provide lump-sum payouts upon the diagnosis of specified critical illnesses. Importantly, the funds are not earmarked for specific use; beneficiaries are free to apply them toward any pressing financial requirement, whether it’s securing better accommodation, funding an extended treatment plan, replacing lost income, or simply maintaining household expenses.
As healthcare challenges become more complex, it is increasingly evident that traditional health insurance alone is not enough. Crisis cover plans serve as a vital complement, offering financial flexibility when it’s needed most. By addressing the real-world costs of recovery, both medical and non-medical, they ensure families can focus on healing rather than financial strain. In today’s uncertain times, building a comprehensive health protection plan is not just wise, it’s essential.
It is authored by Vaibhav Kathju, CEO and Founder, Inka Insurance.
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A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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