What is disability cover in health insurance?

Disability is a physical or mental condition of a person which limits his/her movements, senses and activities. The nature of disability can be of two types:- Permanent and Temporary. Permanent disability is when the disability is lifelong and cannot be recovered. For example loss of limbs or eyes is permanent which cannot be recovered. Temporary disability is when the disability is only for a limited period and is recoverable. For example, the breakage of limbs which can be recovered after a period. 

The disability would be either Total or Partial. Total disability is where a person’s movements, senses or activities are completely restricted whereas partial disability is when a person’s movements, senses or activities are partially restricted. 

Disability can be either accidental or by birth. In the former the disability would have been due to an accident and in the latter the disability would have been from the time of birth. Insurance covers only the accidental disability whereas the disability by birth would be an exclusion. Group health insurance for employees covers the medical expenses of the employees in case of hospitalization due to an accident resulting in disability. The medical expenses incurred as a result of disability would be covered under the group health insurance for employees. 

There is a seperate insurance policy to pay for the accidental disability known as the personal accident policy. The personal accident policy can be taken for employees and is known as the group personal accident policy for employees. The personal accident policy covers the temporary as well as permanent disability. 

The disability cover under a health insurance policy is only limited to the medical expenses incurred due to hospitalization as a result of an accident. 

The permanent total disability is when the disability is complete and permanent in nature. For example, the loss of 2 limbs or eyes is a total disability which is permanent in nature as the disability cannot be recovered. 

Permanent Partial disability is when the disability is partial and permanent in nature. For example the loss of 1 limb or 1 eye is a partial disability which is permanent in nature as the disability cannot be recovered. 

Temporary total Disability is when the disability is complete and total but temporary in nature. For example, the fracture of two limbs or legs due to an accident is a complete disability with temporary in nature as the disability can be recovered after a certain period of time. 

Temporary Partial disability is when the disability is partial but temporary in nature. For example, the fracture of one limb or leg is partial and temporary as the disability can be recovered after a certain period of time. 

Health insurance policy is an indemnity based policy where the payout depends on the claim amount whereas the personal accident policy is a limited benefit policy in which the claim amount would be the sum insured mentioned under the policy.