It is not mandatory to buy a top-up from the same insurer as your base plan
27-Dec-2016 •Research Desk
I have a family floater mediclaim policy of Rs 3 lakh from Oriental Insurance. I want to buy a top-up cover of Rs 7 lakh. Can I buy it from a different insurance company since Oriental does not have top-up policies?
-Rajesh
Yes, you can buy a top-up policy from a different insurance company than the one from whom you've bought your base plan. In fact, you can buy a top-up even if you don't have a base plan at all.
We would rather suggest you to consider a 'super top-up' policy instead of a top-up policy. The former is far better. The difference between the two is that under top-up plans, deductible limit applies afresh to each claim whereas, under super top-up plans the deductible applies to total admissible medical expense incurred during the year. Top-up plans work on 'per claim' or 'per single hospitalization' basis, they are beneficial as long as the single claim amount is above the threshold limit.
For example, if Mr. X has a top-up plan and a super top-up plan with Rs 3 lakh deductible. Now, say, 2 claim arises in a year - the first one of Rs 2.5 lakh and the second one of Rs 2 lakh. The top up policy, due to its nature, will not pay out anything in either case (because none of the individual claim exceeds Rs 3 lakh). However, in super top-up the total of both claims will be considered for the deductible and hence in the second claim Rs 1.5 lakh (2lakh+2.5lakh-3lakh) will be paid out.
Super top-up plans cost more than the top-up plans but in our opinion, the benefits outweigh incremental cost as explained above.
BackWe will try to answer all questions sent to us. If the question addresses the concerns of the general audience, we’ll publish it.
