Health Insurance policy covers hospitalisation expenses (if hospitalisation is more than 24hours) on account of an illnesses or injuries. A comprehensive health insurance covers the cost of hospitalisation, day-care procedures, medical care at home (domiciliary hospitalisation), ambulance charges etc. The expenses are paid directly to the healthcare provider or reimbursed. The Income Tax Act of India allows tax benefit u/s 80D for premiums paid for health insurance plans.