Which is Better Mediclaim or Insurance?

Choosing between mediclaim and insurance for your healthcare needs can be a bit confusing if you're not familiar with the differences between the two. Both options provide financial protection against medical expenses, but they cater to different aspects of healthcare coverage. In this guide, we'll explore mediclaim and health insurance in detail, highlighting their features, benefits, and differences to help you decide which one is better suited for your needs.

Understanding Mediclaim

Mediclaim policies are specific types of health insurance plans that provide coverage for hospitalization expenses for a certain period. These policies typically cover expenses such as room charges, doctor fees, medical tests, and surgery costs, up to a specified limit. Mediclaim is designed to reimburse the expenses incurred during hospitalization stemming from illness or accidents.

Features of Mediclaim:

  • Coverage for hospitalization expenses.
  • Reimbursement of medical bills.
  • Predetermined sum insured limit.
  • Coverage can be availed for both individual and family members.

Understanding Health Insurance

Health insurance is a broader term that encompasses a wide range of health-related financial protection plans. Unlike mediclaim, which is limited to hospitalization expenses, health insurance can cover a more extensive array of medical costs, including pre and post-hospitalization expenses, ambulance charges, maternity benefits, and sometimes even outpatient department (OPD) expenses.

Features of Health Insurance:

  • Comprehensive coverage including pre and post-hospitalization.
  • Includes coverage for critical illness, accident cover, and more.
  • Offers cashless treatment facility at network hospitals.
  • Provides tax benefits under Section 80D of the Income Tax Act.

Mediclaim vs. Health Insurance: Key Differences

Coverage Scope:

  • Mediclaim is restricted to hospitalization expenses.
  • Health Insurance covers a broader spectrum of medical costs and sometimes offers add-on covers for critical illnesses.

  • Mediclaim offers limited flexibility in terms of policy options.
  • Health Insurance plans are more flexible, offering various covers and sum insured options that can be customized based on individual needs.
Sum Insured Limit:

  • Mediclaim policies typically have a lower sum insured limit.
  • Health Insurance policies offer higher sum insured options, catering to the increasing cost of medical treatments.

  • Mediclaim provides basic financial protection against hospitalization.
  • Health Insurance offers comprehensive coverage, including preventive care benefits, which encourages a healthier lifestyle.

Which is Better?

Deciding whether mediclaim or health insurance is better depends on your specific healthcare needs, financial situation, and what you expect from your coverage. Here are a few considerations to help you make an informed decision:

  • For Basic Coverage: If you are looking for a basic cover mainly for hospitalization expenses, a mediclaim policy might suffice.
  • For Comprehensive Protection: If you prefer a more extensive coverage that includes pre and post-hospitalization, critical illness cover, and more, then opting for a health insurance plan would be beneficial.
  • Budget Considerations: Mediclaim policies are generally more affordable than comprehensive health insurance plans. If budget is a constraint, you might start with mediclaim and gradually move to a more comprehensive health insurance plan.
  • Family Coverage: If you're considering coverage for your family, many health insurance plans offer family floater options, which might be more cost-effective and convenient than individual mediclaim policies for each family member.


Both mediclaim and health insurance serve the crucial purpose of providing financial aid in times of medical emergencies. The choice between the two should be based on your healthcare needs, coverage expectations, and financial capability. It's essential to carefully read the policy documents, understand the coverage details, exclusions, and terms and conditions before making a decision. Consulting with a financial advisor or an insurance expert can also provide valuable insights tailored to your specific situation, ensuring that you choose the best option for you and your family's health and financial well-being.

Buy best medical health insurance in NZ from Essential Mortgages NZ. Our comprehensive health insurance plans offer extensive coverage for medical expenses, including doctor visits, hospital stays, surgeries, and prescription medications. With flexible options tailored to your needs and budget, we ensure you and your family receive the care you deserve without financial worries. Trust Essential Mortgages NZ to provide you with top-notch customer service and reliable coverage when you need it most. Secure your health and well-being today with our trusted medical insurance solutions.

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