Insurance Glossary

Insurance Term - Reimbursement

Under a Health Insurance policy, the cost of various hospital charges (such as bed charges, medicines, lab tests, surgeon’s fees, etc.) are paid back to the insured/policyholder who makes the claim. In other words, the insured pays the (hospital) expenses incurred, but thereafter is reimbursed by the insurance company upon submission of his/her claim with relevant documents accompanied by justified and reasonable medical expenses incurred as part of an individual’s treatment.

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