What is medical insurance?

This type of insurance is also referred to as health insurance. It reimburses or pays
for medical expenses incurred by the insured or employees of the insured and their
dependants. The policy can be for out-patient or in-patient only or a combination
of both. It covers medical expenses incurred as a result of accidental bodily injury,
illness and/ or disease.

There are two types of policies:-
• Reimbursement policy – more traditional and provides that the insured
pays for the medical expenses first and, then, lodges a claim for
reimbursement.
• Benefits policy – This is now more popular. Here, you get a medical card
that gives you access to a network of insurer approved preferred provider
organization.