Thomas E Freston, the American media mogul and founder of Viacom and MTV, said “Innovation is taking two things that already exist and putting them together in a new way”. And that is exactly what ICICI Prudential Mutual Fund did!

It “innovated” a new product by adding the “medical advantage feature” to their Savings Fund—combining the features of a mutual fund with a mediclaim policy.

If you are wondering how it works, here’s a snapshot:
 

1. The fund house has tied up with Vidal Healthcare Services Pvt Ltd, a Third Party Administrator with a pan-India network of over 6,000 hospitals and 1,500 diagnostic centres.
    
2. An investor has to open a new folio with ICICI Prudential Mutual Fund’s Savings Fund with the medical advantage feature.
    
   
   Once you invest, you will receive a Medical Advantage Feature Card (similar to the cashless card issued by General Insurance Companies on medical insurance policies). Multiple investors can also invest in the same fund. In such a case, all of them would be issued a Medical Advantage Feature Card
    
3. You need to inform Vidal Healthcare Services, the estimated expenses, beforehand, in case of a planned surgery (similar to informing a TPA in case of a health insurance claim).
    
4. Whenever there is a need for medical expenses, an investor needs to:
   • Show the medical advantage card at the admission desk.
   • Fill the medical advantage feature redemption form available with the network hospitals and Vidal health pre-authorisation form.
      
5. If the investments are made in “Either or Survivor” mode, any holder can sign the form. However, in case the mode of holding is “single” and the investor isn’t able to sign the form, a validation from the hospital is sufficient to affirm the incapacity. Make sure to carry the Medical Advantage Card during hospitalisation—especially in case of unplanned surgeries.
    
6. As per the estimate given by the hospital, some of the units will be redeemed, while some are blocked in case of additional costs.
    
7. You may top-up the fund anytime for future medical needs through added investments.
   Some of the benefits that come along are:
   • Access to a doctor on phone 24 hours a day, 7 days a week;
   • Upto 25% discounts on medical tests;
   • Access to a neutral second opinion; and
   • Advice on which hospital to choose

However, these features are available only to investors in the scheme and cannot be availed by other family members. In which case, the redemption needs to be done under the pre-existing / nromal course. Yes, an investor is free to redeem his/her investments in the pre-existing / normal course too (i.e. non-medical expenses). The medical advantage feature is currently available with ICICI Prudential Mutual Fund’s Savings Fund only and has not expanded to some of the better performing schemes.

Who should opt for?
This product is suitable for senior citizens who may not be able to arrange for insurance benefits, or for individuals with pre-existing diseases. The idea is to avail the benefits of:

• Cashless facility
• Doctor on Call
• Opportunity to have a second opinion and discounts.

Buying this product isn’t a prerequisite and an individual can opt for other liquid funds too. At PersonalFN, we believe one should hold at least 6 to 12 months of regular expenses in a contingency fund, where besides holding cash in bank, one may also invest in liquid funds.

It is vital to recognise that though this offering from ICICI Mutual Fund comes with added benefits, it does not replace a health insurance policy, which should always be the first priority for any individual that must be availed with an optimal insurance coverage.

Add Comments

Comments
dmaheshwari.125@gmail.com Mar 25, 2016 I would appreciate , if I may be answered following : 1) In case of husband and wife , should they make a single investment or make a joint investment in one single folio with somewhat larger sum , 2) Certain benefits like , 24/7 doctor on phone, access to 2nd neutral opinion and advise on hospital subject to cost or free ? Thanks & regards.

 1