What is cashless insurance?

Cashless insurance is a facility offered mainly in health insurance, where the insured does not have to pay the hospital bill upfront. Instead, the insurance company directly settles the bill with the hospital.

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✅ Simple Definition

Cashless insurance allows the policyholder to get treatment at a network hospital without paying cash; the insurer pays the hospital directly.

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✅ How Cashless Insurance Works

1. You visit a network hospital (hospitals tied to your insurer).
2. Hospital informs the insurer and requests pre-authorization.
3. Insurer reviews and approves the treatment under the policy coverage.
4. You receive treatment without paying the covered amount.
5. Hospital sends the bill to the insurer, and they pay directly.
6. You may need to pay co-payments or charges not covered by the policy.

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✅ Key Points

• Only available at network hospitals unless the insurer allows exceptions.
• Usually for hospitalization expenses (room, surgery, medicines).
• Requires pre-approval from the insurer for planned treatments.
• Saves the policyholder from arranging large sums of money for medical bills.

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✅ Example

• You have health insurance with ₹5 lakh sum insured.
• You are hospitalized for ₹2 lakh surgery at a network hospital.
• Hospital contacts the insurer → Insurer approves → Hospital is paid directly.
• You may pay a 10% co-payment if your policy has one.