Allocated benefit provision

A provision in an insurance policy under which payment for certain benefits (such as miscellaneous hospital and medical services like X-rays, dressings and drugs) will be made at a rate for each specified (scheduled) in the provision. Usually there is also a maximum that will be paid for all such expenses. An allocated benefit is one which is subject to such a provision. In an unallocated benefit provision no specification is given of how much will be paid for each type of service although the maximum payable for all the listed service.


 


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