What Is Cashless Health Insurance & Different Types of Cashless Plans in India
Written by Mariyam Sara
2 min read | Updated on October 31, 2025, 17:18 IST
What Is Cashless Health Insurance?
Different Types of Cashless Plans in India
How Does Cashless Health Insurance Work?
Benefits of Cashless Health Insurance
Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.
One of the main reasons people hesitate to take insurance is due to claim settlement issues. Nobody wants to deal with the hospital and insurance provider to get payments settled when you are already troubled by your health issues. But cashless health insurance solves this problem.
What Is Cashless Health Insurance?
Cashless health insurance allows you to receive medical treatment at a hospital under the insurance provider network without having to worry about payments. All payments and expenses are settled by the insurer by directly communicating with the hospital.
Different Types of Cashless Plans in India
Let’s look at the types of cashless plans in India.
Individual Health Insurance
Individual Health Insurance is designed for individuals like you, which covers the hospital expenses mentioned in the insurance policy.
Family Floater Plans
In a family floater plan, you just have to pay one premium, which will cover the health expenses of your spouse, parents, and children.
Senior Citizen Health Insurance
This plan is designed for senior citizens and customized for their health needs. This ensures seamless medical treatment without the hassle of payments.
Critical Illness Plans
Critical illness plans protect you against the financial burden in the event of critical illness like cancer, heart attack, or stroke. In this plan, you receive a lump sum amount while you recover.
Maternity Health Insurance
A maternity health insurance plan is designed for soon-to-be moms and covers pre- and postnatal care. It also covers delivery costs and vaccination expenses for the child.
Group Health Insurance
Group Health insurance is taken out by employers for their employees. All the employees are eligible for coverage under this plan.
Personal Accident Insurance
In the event of personal accident insurance, this insurance plan covers the financial loss in case of disability or loss of life due to an accident.
How Does Cashless Health Insurance Work?
Cashless health insurance works like any other insurance plan with some exceptions. Here’s how it works.
- Select Your Insurance Provider
Pick an insurance provider that suits your unique requirements. Check out their review by existing policyholders before finalizing your insurance provider.
- Choose Your Coverage Plan
Choose a coverage plan as per your needs and budget. There are various types of plans you can pick.
- Pay Your Premium
After selecting your cashless health insurance plan, begin paying your premium monthly or annually, as per your policy's terms, and enjoy health coverage.
- Locate Network Hospitals
Cashless Health Insurance is provided for the hospitals and medical centers partnered with the insurer. You will be eligible for cashless health insurance only if you seek treatment at the partnered hospitals.
- Provide Your Insurance Card
If you are admitted to a hospital for treatment, you will need to present your insurance card, which should contain all the necessary details for your insurer. This will help the hospital and insurer cooperate and clear payments promptly.
- Receive Treatment
You receive treatment at the hospital in the insurer’s network, and they will communicate directly with your insurance provider for payment settlement.
- Claim Settlement
After you’ve received your treatment, the insurance provider will pay for the expenses incurred, while you can focus on your recovery.
Benefits of Cashless Health Insurance
Several benefits of Cashless Health Insurance make it a favorable choice for individuals who don’t want to worry about
Convenience
Cashless health insurance lets you receive medical treatment without having to worry about payments and chasing insurance providers for getting your claims settled.
Immediate Access to Care
With Cashless health insurance, you get immediate access to care without having to worry about arranging for the expenses.
Financial Support
Having an insurance plan provides a safety net that protects from financial burden in the event of a health crisis.
Hospitals
In cashless health insurance, you have to seek treatment at any hospital under the insurer’s network. You can select health facilities from the insurer's network.
Seamless Process
With Cashless Health Insurance, you can focus solely on your recovery and let the insurance provider and hospitals deal with the payment settlement.
Cashless health insurance not only protects you from the financial stress during a health crisis also from the mental stress of claim settlements.
About Author
Mariyam Sara
Sub-Editor
holds an MBA in Finance and is a true Finance Fanatic. She writes extensively on all things finance whether it’s stock trading, personal finance, or insurance, chances are she’s covered it. When she’s not writing, she’s busy pursuing NISM certifications, experimenting with new baking recipes.
Read more from Upstox