Around sixty per cent of Indians’ medical expenses is for outpatient treatment, such as doctor’s consultation fees and pharmacy bills. Yet, most health insurance policies do not cover these expenses. The policies largely limit themselves to hospitalisation bills. The few that do cover such expenses do so with conditions and sub-limits. For instance, diagnostic tests could be covered up to Rs 2,000 a year and doctors’ consultations capped at ten per year. This coverage typically comes with premium variants or as add-ons, with additional costs. Some tax-payers buy these covers to maximise deductions under section 80D on health premiums paid.
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