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Quick-fix policy? You must be kiddingTeam@Wealth
Friday, November 23, 2007 
A recent advertisement said: Life Insurance cover of Rs 20 lakh (Rs 2 million) without medical checkup! To get this, you need to sign a simple health declaration that states you have not contracted any preexisting illness. And the insurance is yours. Spurred by this no-hassle promise, some web sites are now promising health insurance online in 40 minutes. Needless to say, it is a hit. But there is a reason why we are told not to take the easy way out. A shortcut could, sometimes, lead to a dead end. Bribing a cop could lead to jail; jumping a queue could bring on a fight. Similarly, skipping a medical check while taking a health cover can backfire. Insurance experts say that buying a health insurance cover without a medical checkup is risky, since there could be several points that may not be to your benefit. Antony Jacob, Managing Director, Royal Sundaram General Insurance Company, says, "It is essential that the consumer understands the policy terms and conditions well, especially in the areas of exclusions relating to pre-existing diseases." Let's say Anand is suffering from a heart ailment, which he is not aware of while buying health insurance. Unfortunately, Anand's health policy will not cover this, because it is a preexisting illness. If you are still tempted by the 40-minute policy, pause. That 40 minutes is never 40 minutes. Kartik Jain, Marketing Head, ICICI Lombard General Insurance, says, "We have an online facility for health cover, but the individual will receive the actual policy only after two to three days. This is because our underwriter will (need to) go through the information given by the individual in his health declaration. And if required, the customer will be called in for further enquiry depending on the seriousness of the medical history. Only after verification is the health cover issued." Even if the insurance company does not insist on a medical check, get one anyway. An expert health underwriter says, "It is in your interest to present a complete health report to your insurance company whether they ask for it or not. This will save you any trouble later and give a clear picture about your medical condition to your insurer. Also, your insurance company will not be able to reject your claim on grounds of preexisting illness later." Jacob says, "Under our Healthshield cover, medical checkup is necessary for all individuals above 45 years. My advice is, even those in younger age bands must get into the practice of regular medical checkups. This not only helps you catch early warning signals, it may be extremely useful at the time of assessing claims. So do the checkup at your own cost to protect yourself against the slightest chance of bearing huge hospital bills." If these simple declaration forms tempt you to lie, think again. Milind Kolhe, Senior Underwriter, HDFC Chubb, says, "At the time of a claim, doctors can easily verify and pinpoint when the individual contracted the illness. If this is diagnosed as preexisting -- whether the individual was aware of it or not -- the claim will not be tenable." Jain says, "We have clearly stated that no preexisting illnesses are covered. If any such instance comes up later, the claim is rejected for non-disclosure of facts. So it is in your interest to reveal facts." "Our experience has shown that most claims that are rejected fall under the category of preexisting disease and the exclusions relating to the first year and first 30 days," says Jacob. So while there is no quick-fix solution where insurance is concerned, it is still a critical issue that must be handled with care. Disclaimer: Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content. also read
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kentmss at 05-Sep-08 20:52
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