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Hospital Cash Allowance: How Much Can You Claim Per Day and a Complete Guide on How to Claim

Want to understand what Hospital Income Benefit (Hospital Cash Allowance) is? How much daily allowance can your medical card provide? Can you claim hospital allowance with an MC? This article provides a detailed explanation of the benefits of hospital cash allowance and the claims process.
Author Bowtie Team
Date 2026-06-19
Updated on 2026-06-18
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If you have recently started planning your medical protection or have heard that you can receive extra “pocket money” when hospitalized, you may be curious about “Hospital Cash Allowance (Hospital Income Benefit)”. What exactly is this allowance known as medical card allowance? How much can you get per day of hospitalization?

What is Hospital Income Benefit (Hospital Cash Allowance)?

Hospital cash allowance is a fixed cash compensation you receive based on the number of days you are hospitalized.

Many people think that having a medical card is enough, but when you need to be hospitalized due to illness or accident, in addition to medical expenses, you will also face other hidden costs. The main function of the medical card allowance is to serve as a supplement to the medical card. It can be used to pay for family members’ transportation expenses for hospital visits, meals, or purchasing nutritional products. More importantly, it can compensate for the income you lose due to being unable to work. This is an important safety net for daily-wage workers, freelancers, or office workers whose sick leave is insufficient.

What is the difference between Hospital Cash Allowance and a regular Medical Card?

Many Malaysians often confuse regular medical cards with hospital cash allowance. Simply put, they have clear differences in claims method and usage of funds:

  • Medical Card (Medical Card): It mainly adopts the principle of reimbursement as incurred (Pay and Claim or Cashless). It is used to directly pay for medical fees, surgery fees, ward fees, etc. generated in the hospital. The medical card will reimburse whatever the bill amount is, within the limit. This money is paid to the hospital and you cannot freely dispose of it.
  • Hospital Income Benefit (Hospital Cash Allowance): It pays a fixed amount according to the number of hospitalization days. For example, if your policy stipulates RM100 per day, you can receive RM500 for a 5-day hospitalization. This money is directly transferred to your personal bank account and can be used completely freely—whether to repay car loans, for household expenses, or simply to save.

How much can you claim per day of hospitalization?

The daily allowance amount you can receive mainly depends on the insurance plan and sum insured you purchased.

  • Common allowance amounts: In the Malaysian market, most plans provide daily allowances ranging from RM50 to RM300.
  • Maximum claim days: This allowance is not unlimited. Policies usually set a maximum number of claim days per hospitalization or per year (e.g., maximum 60 days or 120 days per year).
  • Double compensation for ICU: If the condition is serious and requires admission to the Intensive Care Unit (ICU), many policies will provide double the daily allowance. For example, if the normal daily amount is RM150, it will increase to RM300 during ICU stay to ease the huge financial and psychological pressure caused by critical illness.

Can you claim hospital cash allowance with an MC (medical certificate)?

Simply seeing a doctor at an outpatient clinic and getting a medical certificate (MC) does not allow you to claim hospital cash allowance.

The core condition for claiming hospital cash allowance is “must be hospitalized” (Admission). In other words, if you only go to Klinik Kesihatan or a private clinic, get a two-day MC and rest at home, this does not qualify for a claim.

Generally, insurers require the insured to have actual hospital admission records, and usually stipulate that hospitalization must exceed a certain period (e.g., at least 6 hours or overnight) to successfully apply for this allowance.

How to Claim Hospital Cash Allowance? Detailed Application Process and Required Documents

Preparing to claim hospital cash allowance is actually not complicated. Just follow the steps below and prepare the required documents:

  1. Request medical report from the hospital: When preparing for discharge, remember to request the relevant medical report and Discharge Summary from the nurse or attending doctor. This is the key document proving that you were hospitalized and the diagnosis.
  2. Fill in the claim form: Obtain the hospital cash allowance claim form from your insurance agent or download it from the insurer’s official website, and fill in your personal details and hospitalization information truthfully.
  3. Prepare supporting documents: Attach a photocopy of your NRIC (front and back), the first page of your bank statement showing the account number (for direct transfer), and a complete copy of the hospital bill (to prove the number of hospitalization days).
  4. Submit the application and wait for approval: Submit all documents to the agent or through the insurer’s official website or mobile App. Generally, the allowance will be directly transferred to your designated bank account within a few working days after approval.

Frequently Asked Questions

If I already have a company medical card, do I still need to buy my own hospital cash allowance?

It depends on personal needs. A company medical card usually only reimburses direct medical expenses, but income loss during sick leave, family members’ transportation and meal expenses for caregiving, etc., still need to be covered by hospital cash allowance. This allowance provides you with additional financial buffer.

Can I still claim hospital cash allowance after claiming medical expenses on the medical card?

Yes, the two do not conflict. After using the medical card to settle hospital bills, you can still apply for hospital cash allowance from the insurer based on the hospitalization records. The allowance is additional cash issued separately and belongs to a different claims mechanism from medical expense reimbursement.

Can I get the allowance for hospitalization due to any reason?

Not necessarily. It depends on the policy terms. Usually, pre-existing conditions, specific exclusions (such as cosmetic surgery, non-medically necessary hospitalization), or routine medical check-ups are not covered and cannot be claimed.

Is there a claims deadline for hospital cash allowance?

Yes. Most insurers stipulate that the claim must be submitted within 30 days after discharge. It is recommended to collect all medical reports and documents as soon as possible upon discharge to avoid missing the claims deadline.

Information Sources

  1. liam.org.my
  2. liam.org.my
  3. liam.org.my
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The above information was provided by Bowtie Team. It is for reference only. In no event shall Bowtie be liable to you or to any other party for any loss or damage whatsoever or howsoever caused directly or indirectly in connection with your access to or use of the content thereon.

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