Definition
Restoration Benefit
Restoration (or recharge) benefit automatically reinstates the health policy's sum insured once it is exhausted during a policy year, providing fresh cover for further claims.
If a family's sum insured is used up by a big claim, the restoration benefit refills it, so a subsequent unrelated illness or another family member's hospitalisation can still be covered in the same year. Plans differ on whether restoration triggers on partial or full exhaustion and whether it applies to the same illness.
This feature is especially valuable in family floater policies, where one member's large claim could otherwise leave others without cover for the rest of the year. Buyers should check if restoration is unlimited, once-a-year, or limited to different illnesses, as terms vary widely across Indian insurers.
Related terms
- Super Top-UpA super top-up health policy provides extra cover above a chosen deductible, applying the deductible once across all claims in a policy year rather than per claim.
- Family FloaterA family floater is a single health policy with one shared sum insured covering the whole family, instead of separate sums for each member.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.