Indemnity Plan

Updated: 29 February 2024

What Does Indemnity Plan Mean?

An indemnity insurance plans allow individuals to direct their own healthcare and visit almost any doctor or hospital they choose. A set portion of the total charges are then covered by the insurance company.

Indemnity plans are also known as “fee-for-service” plans.

Insuranceopedia Explains Indemnity Plan

There are two types of indemnity insurance plans: professional indemnity and indemnity health. Most indemnity insurance plans are voluntary, but some businesses are required by law to provide such a policy for their employees.

Indemnity health insurance reimburses the insured after they submit a claim for covered medical care. These plans pay out a specific amount per day for a maximum number of days. Some plans may also have a coinsurance amount that is covered by the insurer.


fee for service plan
Go back to top