The significant point which you as a consumer can expect from the portability of health insurance policy (change over from existing insurance company to another insurance company )coming from July 1 ,2011 will be that even if you have an existing disease ( for which you have been treated /paid claim by existing insurance company in last few years say 2 years)you will be able to switch over to another insurance company .You will not be asked to wait for period of 4 years ( pre existing disease being mentioned in the policy as a result of which any claim due to same disease would be non payable for 4 yrs).
The question before us with example is :
Person 'A' having policy for Rs 2 lakhs and paying premium of Rs 2800 per year lodges claim for Rs 1.80 lakh and the same is paid. Next year he wishes to change to another company 'I' by using portability clause.Why should the company 'I' take a client with preexisting disease .The practical scenerio will be that 'I' will not accept the proposal form from 'A'.
The consumer does not have any option because at present the insurance companies are not bound to issue rejection letter or non acceptance letter for returning the proposal form.If the same situation continues ,which we understand is going to be then the client will have no document to complaint to any body for want of the same.
This has been happening with senior citizens when someone above 65 or say 70 yrs for last so many years. When he submits proposal for policy under Varisht Bima the proposal form is not accepted by the Insurance companies.This is the reason that if 100 policies are issued to 60 yrs old age group then the policies issued to 70 yrs old age group (we are talking of new policies not renewal of policies ) come down to 1 or even less than 1 .The underwriters sitting in the branches say that they have instructions to not to underwrite policies for those who are above 65 or 70 yrs.The best thing is that no record is maintained in these branches that how many such proposals were returned by the them in their branch.
If the precautions are not taken in this regard then let us be prepared that portabilty of insurance policy for persons with preexisting diseases is going to be sabotaged by the same underwriters and we will be at same level where we are at present.
If a person is normal then even now many companies have been accepting the proposals or issuing the policies with continuity for healthy persons.The problem is mainly with those persons who have lodged claim in last 2 years.
We will welcome the comments from you .You may like to suggest how this issue should be handled by those who are drafting the portabilty document or notification ,which will be implemented from July 1,2011
Sunday, February 13, 2011
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6 comments:
nice article sir.
i have a family floater policy with syndicate bank called syndarogya. The insurer is united india. At a later date, if the bank discontinues the policy, can i shift to united india or any public insurer with the benefits of waiting period, premium etc.
kindly reply.
best regards,
babu
You should hope & wish that the bank continues with same policy with same company for long time. Any change will bring disappointment to you .If I was in your position I will stop this policy when it comes for renewal and go in for a normal policy which will be issued by an Insurance Company.
Hi there,
This is outrageous that an insurance company can REJECT one's application on the basis of his/her previous claim status. I do understand that the person brings in more risk - and should pay more to cover that.
Also don't understand the pre-existing game that they play. In any civilized country, important items like pregnancy, heart attack etc are always covered irrespective of pre-existance.
I would welcome government mandate to take anybody into insurance with any disease. After all that's why they are there. Otherwise insurance becomes a joke that just makes money out of healthy people.
Thanks
Rahul
Hello,
I have a message for the webmaster/admin here at www.healthinsuranceindia.blogspot.com.
May I use some of the information from this post above if I give a link back to this website?
Thanks,
Oliver
Hi,
Yes you can use only the back links as http://www.healthinsuranceindia.org/ and http://healthinsuranceindia.blogspot.com/ of any page.
Please do not use any information from our website/blog without taking out authorization/payment to us.
Dear Sir,
Good article.
I am interested in health insurance for my family. Do you have an office in Bangalore?
what would be the benefit if i have a policy through RIA? such as speedy claim processing etc. Thanks in advance.
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