Although both Health insurance and Mediclaim protect against medical expenses, health insurance is more comprehensive and offers greater flexibility. Health insurance can be taken by groups/individuals to avail cashless treatment or reimbursed medical expenses. It allows pre and post hospitalization coverage along with riders for extra cover.
Mediclaim covers hospitalization expenses for a list of illnesses specified by the insurer up to a particular limit based on sum assured. Situations include sudden illness, accidents and surgery. The insured must bear the expenses later reimbursed by the insurer.
Both health insurance plans and Mediclaim are eligible for tax benefits under Sec 80D of the Income Tax Act.