Today, health treatment can be quite expensive. People suffer from more stress looking through their medical bills than they did of their actual illness. The best way to get rid of such worries is to take out a health or medical insurance policy. A health insurance policy not only covers expenses incurred during hospitalization but also during the pre as well as post hospitalization stages. This may include money spent for conducting medical tests and buying medicines. The cover is usually to the extent of the sum insured.

Health insurance companies offer many innovative policies and schemes to their customers nowadays. The latest product in this line is 'cashless hospitalisation'. Under this plan, individuals insured do not have to pay for their hospital bills in case of hospitalisation; the insurance company settles the bill directly. But, certain terms and conditions have to be met. For example, the hospital needs to have a tie-up with the insurance company and the documents need to be in order.

Insurance is handled by General Insurance Corporation of India (GIC). Its four subsidiaries; National Insurance Company, Oriental Insurance Company, New India Assurance Company and United India Insurance Company were de-linked from the holding company and are now managed as Government of India undertakings.