• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Shanthi Venkataraman

IT HAS become commonplace for credit card issuers to throw in an insurance cover as a freebie. In most cases, the package is rarely substantial enough to cover the losses or expenses of, say, an accident or hospitalisation.

HDFC Bank's `Health Plus International Credit Card, however, appears to offer more. Through a tie-up with the National Insurance Company, the card provides an attractive health insurance package with an in-built medical claim (mediclaim) and `critical illness' cover.

The product

The card has all the features of a regular credit card, including travel booking and discounts on tickets, offered by HDFC Bank's International Silver card, are included. The Health Plus card includes a mediclaim cover of Rs 50,000 and a `critical illness' cover worth Rs 1.5 lakh. The latter requires you to undergo a medical check-up and covers open-heart surgery, cancer, kidney failure and vascular stroke.

With this card, you can avail yourself of what is known as a `cashless mediclaim' facility — you do not have to settle medical bills when you go to a hospital for treatment. On issue of the Health Plus card, the holder will get an identity card from a third party administrator (TPA) — an intermediary between the hospital, the insurer and the cardholder — and a list of networked hospitals. The TPA (in this case, Family Health Plan Limited) will settle the bill on your behalf.

The cover can also be extended to add-on cardholders. You can apply for additional mediclaim at attractive rates. This will allow you to enjoy a tax-break for a premium of up to Rs 10,000 paid towards mediclaim.

Even if you are not inclined to using the insurance cover, you are likely to enjoy discounts of 10-20 per cent at these hospitals. For instance, you can get eight per cent off, if you go for a health check up at Mumbai's Breach Candy Hospital.

An attractive package

The annual fee, on the face of it, appears steep at Rs 950. If you are above 55 years, you are charged a surcharge of Rs 400. A regular credit card usually attracts an annual charge of Rs 350-400. HDFC Bank's International Silver Card, which targets customers at the premium end, charges Rs 700. But the annual fee appears attractive when you consider the premium you would have to pay otherwise.

For instance, if you apply for mediclaim worth Rs 50,000, you are likely to incur an annual premium of about Rs 750. The premium you pay would shoot up if you take up a `critical illness' cover.

Suitability

If you are young and the idea of taking up medical insurance does not appeal to you, this card may be a good option. Those who would like to increase their insurance cover can also consider this option. After all, you get a credit card in the bargain.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
New variants is always on the cards

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line