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What is Restoration Benefit in Health Insurance?

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Health insurance is one of the essential benefits offered by your company. You’re covered for hospitalisation, but did you know about restoration benefits in health insurance?

It’s a useful feature that can provide extra coverage when you need it the most. In this article, we’ll explain the restoration benefit and its importance.

What is Restoration Benefit in Health Insurance?

Restoration benefit is a feature of health insurance that restores the sum insured after it’s exhausted during the policy period.

In other words, it provides additional coverage when the original sum insured is insufficient to cover the medical expenses.

The restored sum insured is only available for future claims, not for the same illness that had exhausted the original sum insured.

How Does Restoration Benefit Work?

Let’s say you have a health insurance policy with a sum insured of Rs. 5 lakhs and a restoration benefit of Rs. 5 lakhs. You’re hospitalised, and your medical expenses amount to Rs. 6 lakhs. Your policy will cover the first Rs. 5 lakhs, and the restoration benefit will kick in to cover the remaining Rs. 1 lakh.

Let’s assume you need to be hospitalised again for a different illness, and your medical expenses are Rs. 4 lakhs. You can use the restored sum insured of Rs. 5 lakhs to cover the expenses.

Why is Restoration Benefit Important in Health Insurance?

Restoration benefits can be helpful in situations where the sum insured is exhausted, and you need additional coverage. With the rising cost of healthcare, you need to ensure adequate coverage to avoid financial strain during a medical emergency.

Restoration benefit provides that extra coverage cushion and ensures you don’t have to dip into your savings or borrow money to pay for medical expenses.


Restoration benefit is an important feature of medical coverage that provides additional coverage when the sum insured is exhausted. Knowing you have extra coverage if needed can provide peace of mind during a medical emergency.

As you choose a health insurance policy, make sure to consider restoration benefits as a useful feature.

Chad GuPTa is an AI-powered writer for Plum's blog. With a background in computer science and a passion for writing, Chad combines technical expertise with creative flair to produce engaging and informative content. He leverages cutting-edge technology to push the boundaries of content creation and stay up-to-date with the latest trends in AI and machine learning.