Skip to main content

Understanding the Meaning of 'Double Claim' in Health Insurance

Obtaining privileges from insurance and other banking products is certainly enjoyable and profitable. However, it's important to understand each term of the privilege offered to entice you to purchase the product.

Clearly explaining the benefits you'll receive without any misunderstandings will prevent you from regretting it later. Being a smart consumer is essential for financial well-being.

For example, the term "double claims" in health insurance often serves as a lure for people to purchase the product without fully understanding its meaning. At first glance, there's nothing wrong with the term. However, many people misunderstand the meaning of "double claims."

Understanding the Meaning of 'Double Claim' in Health Insurance


This can lead to them expecting more from additional health insurance than what the company already provides. Therefore, understanding the meaning of "double claims" in insurance is crucial.

So, what does "double claim" mean in insurance?

A double claim in insurance occurs when a policyholder files a claim for the same incident or loss with two different insurance companies simultaneously. This practice can be legal or illegal, depending on the type of policy, the terms of each insurance company, and the claim submission method.

In permitted situations, such as with health insurance, a double claim occurs when a participant has two policies (for example, one from a company and one from a personal insurance company). If one policy doesn't cover the entire cost, the remaining balance can be claimed from the other policy—as long as it doesn't exceed the total actual costs.

For example:

A person has two health insurance policies: one from their company (group insurance) and one from their personal insurance company.

They are hospitalized for a total of IDR 10 million.

The company insurance company covers IDR 7 million, and they submit the remaining IDR 3 million to their personal insurance company.

Because neither policy exceeds the actual costs, and there are no prohibitions in the policies, this is a valid double claim. Some personal insurance policies even offer a "coordination of benefits" system, or reimbursement for the difference not paid by the first party.

However, if someone attempts to obtain full payment from two insurance policies for the same loss (for example, in a car accident and claiming the same damages from both parties without basis), this is considered fraud and a violation of insurance law and ethics.

Examples of Misconceptions About Double Insurance Claims

A common misconception about double insurance claims often stems from the assumption that if someone has two insurance policies, they can receive double the claim amount for a single incident. However, this is incorrect and can lead to claim denials or even accusations of insurance fraud.

For example, a person has two vehicle insurance policies. When their car is damaged in an accident, they file a claim for Rp 10 million with Insurance Company A and receive full compensation. However, they also file a claim for the same damage with Insurance Company B, hoping to receive an additional Rp 10 million. However, the total loss is only Rp 10 million.

This is considered an illegal double claim because the intention is to gain more than the actual value of the loss.

Benefits of Double Claims Health Insurance

You should understand the following benefits of the double claim facility to feel comfortable participating in this insurance program:

You can receive treatment or care at any hospital that is not a partner of the insurance company with the double claim facility.

You can do this through reimbursement. Usually, you will be asked to pay the costs of treatment and care during your stay in the hospital. You can then claim the bill from the insurance company, and the insurance company will reimburse you for the amount you have spent, as stated on the receipt.

Comments

Popular posts from this blog

Fundamental Analysis of The Procter & Gamble Company (PG) Stock

Fundamental Analysis of The Procter & Gamble Company (PG) Stock Fundamental analysis is a method of evaluating a company's intrinsic value by examining its financials, management, and industry to determine its investment potential. For a consumer staples giant like Procter & Gamble, this analysis involves understanding its vast portfolio of household brands, consistent revenue generation, and strategic position in a stable but competitive market. Fundamental Analysis of The Procter & Gamble Company (PG) Stock 1. Financial Health and Performance A thorough review of P&G's financial statements is the first step in our analysis. Revenue Streams: P&G's revenue is generated from a diverse portfolio of consumer products, including brands like Tide, Pampers, and Gillette. The company's business is highly stable and resilient to economic downturns, as its products are considered essential household items. The company's revenue is divided into several s...

Exploring the Future: Why Renewable Energy is Important for All of Us

Exploring the Future: Why Renewable Energy is Important for All of Us In this modern era, climate change and sustainability are major global concerns. One of the most effective and promising solutions is switching to renewable energy. What is renewable energy, and why is it so important for our future? Renewable energy is energy derived from natural resources that are inexhaustible and naturally replenished. Unlike fossil fuels like coal and oil, which are limited and polluting, renewable energy offers a clean and sustainable alternative. Exploring the Future: Why Renewable Energy is Important for All of Us --- Types of Renewable Energy There are several main types of renewable energy that are becoming increasingly popular: 1. Solar Energy : Energy derived from the light and heat of the sun. It is harnessed using solar panels (photovoltaics) to convert sunlight into electricity or solar water heaters to heat water. 2. Wind Energy : The kinetic energy of the wind is converted into elect...

Major Potential of Green Energy in the US

 Currently, green energy, or renewable energy , is experiencing rapid growth in the United States (US) and holds significant potential to replace fossil fuels. This transition is driven by various factors, including concerns about climate change, rapid technological advancements, and supportive government policies. Major Potential of Green Energy in the US Major Potential of Green Energy in the US The United States has abundant natural resources for generating renewable energy. Here are some of its key potentials: 1. Solar Energy ☀️ Solar energy is one of the main pillars of the clean energy transition in the US. With much of its territory experiencing abundant sunshine, the US is an ideal location for solar power plants (PV). Large-Scale: Utility-scale solar power plants are increasingly being built, especially in areas like the sunny Southwest, including California, Arizona, and Nevada. These projects are capable of generating electricity for millions of homes. Rooftops: The ins...