Definition
Maternity Cover
Maternity cover pays for childbirth-related expenses, including delivery, pre- and post-natal care, and often newborn cover, usually after a waiting period.
Most retail Indian health plans impose a long maternity waiting period (commonly two to four years) before delivery expenses are payable, and apply a sub-limit on the amount, distinguishing normal and caesarean deliveries. Group employer policies often provide maternity from day one.
Many maternity covers include newborn baby cover from birth and vaccination expenses for an initial period. Couples planning a family should buy cover well ahead to clear the waiting period, since maternity is a near-certain rather than a contingent expense, which is why insurers price and restrict it tightly.
Related terms
- Waiting PeriodA waiting period is the time after a health policy starts during which claims for specified conditions or treatments are not payable.
- Sub-LimitA sub-limit is a cap within a health policy on the amount payable for a specific treatment, procedure or expense category, regardless of the overall sum insured.
- Newborn CoverNewborn cover extends a maternity health policy to the baby from birth, covering its medical expenses for an initial period without a separate policy.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.