Thank you for contacting NRIOL for your travel insurance requirements. In TATA AIG outpatient medical expenses inlcuding pharmacy bills will be borne by the insured upfront and claim for reimbursement later. The reimbursement will be any amoumt after the decutible as per policy terms and conditions. In case of hospitlaization expenses more than 24 hours, then the insured should get in touch with the assistance provider who will speak to the hospital where your wife is taking treatment and do a direct cashless settlement after deductible as per terms and conditions of the policy.
You can get more details of TATA AIG claims procedure at TATA AIG Schengen Visa Travel Insurance Claims Procedure