Tax benefits and Mediclaim

Mediclaim insurance offers both tax savings and medical cover. Mediclaim cover provides security to meet unanticipated medical expenses. You can insure against medical expenses of yourself or dependents. These policies are offered by almost all insurance companies.

In some cases, preexisting also covered on payment of an additional premium. They provide insurance cover for the treatment of most ailments with hospitalisation. In addition to the basic cover, there are trappings available on payment of an extra premium. Some insurance companies provide cover for day-care and annual medical check-ups as well. You should go through the cover and keeping out clauses carefully. The cover may be enhanced to ailments not normally covered also.

The deduction is available only to individuals and Hindu Undivided Family members. The premium paid for mediclaim policies is tax deductible. Under the Income Tax Act, exemption is available for the amount contributed towards medical insurance premium. This is provided under Section 80D of the Income Tax Act. According to these provisions, premium paid towards a mediclaim insurance is deducted from the total income of an assessee.

The dependence of parents will have to be proved in order to claim the release. Dependence will be evident in case the own resources of the parents are not sufficient to support them. In case of an individual, the amount deductible includes any sum paid for insurance on his health, on the health of his spouse, dependent parents or dependent children.