The rising cost of medical care is leading to an escalated unaffordability of treatments. Much can be attributed to the Indian healthcare market being price-sensitive and volume-driven. In an attempt to deal with the growing healthcare-related financial gap, the government launched initiatives like the National Health Protection Scheme under Ayushman Bharat. Following up on these changes, health insurance penetration is expected to go up from 34% to 50%.
Taking a cue from the escalating healthcare expenses owing to the inclusion of state-of-the-art medical technologies, individuals now opt for informed health insurance renewal options. It is ideally imperative for individuals to consider that each insurance cover caters to customised medical requirements. Accordingly, it is ideal to incorporate any modifications required during renewal.
Insurance companies offer health insurance policy renewals which are simple to understand and easier to follow up on for the benefit of customers. Nonetheless, taking into account that policy renewal presents individuals with an opportunity to bring in the required alterations in their cover, they should take into account a few pointers before renewing their health insurance in India.
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Things to consider before renewing a health insurance policy
- Addition of members to a policy
During a health insurance renewal, a policyholder can include or omit family members under their availed cover. Accordingly, the necessary changes are made to existing terms of a policy.
- Check in the fine prints for alterations in policy terms
The IRDAI has mandated the communication of changes-to-be-introduced in terms and conditions of a cover to a policyholder, 3 months in advance.
Conversely, any changes that the insured wants to introduce should be notified to the regulator for approval. Considering that such health insurance covers are designed to insure an individual in cases of illness or accidents financially, it is essential that an insured readers through the fine prints before renewing one. It is vital to note terms of coverage if changed during the renewal.
Such informed decision ensures that individuals make the most of their availed cover, and mitigates chances of any discrepancy in the policy details that policyholders are not aware of. Following any such unforeseen situations, they can always opt to change their insurers.
- Change insurer if need be
In case a customer finds another insurer offering better terms of coverage than the existing insurance, they can look into the portability option when the existing policy is up for renewal. With such add-on facilities, an insured can opt to port their policy sans losing out on benefits like a no-claim bonus or waiting period. Consequently, in the case of –
- Sub-limits,
- High premium cost, or
- Minimum benefits,
– make sure to check for terms like convenient portability. Also you should consider checking whether your current insurer will be able to offer better coverage terms on renewal.
For other helpful plans, you can buy Pocket Insurance plan & Subscriptions offered by Bajaj Finserv, where you can either –
- Pay for the treatment and find the amount reimbursed later, or
- Go to a hospital within the operational network, wherein the treatment costs are covered right from the start.
With the best health insurance cover, you can avail a type of policy that best suits your requirements –
- Individual Health Insurance Plan
- Critical Illness Insurance cover
- Senior Citizen Health Insurance Policy
- Group/Employee Health Insurance Policy
- Critical Illness Health Insurance Plans
- Options to increase the sum assured
Taking into account the increasing cost of healthcare, an existing health insurance policy may not offer sufficient insurance coverage. Under such circumstances, an insured can request to increase the sum assured during health insurance renewal.
- Disclosing new medical conditions
In line with the updated IRDA 2016, insurance companies are not allowed to impose new conditions in case of disclosure about new medical conditions during the renewal of a cover. However, the company may ask for documents to substantiate a policyholder’s medical declaration.
In addition to the factors mentioned above, remember to include features like an additional coverage such as a top-up health insurance policy that comes with an affordable premium amount, floater coverage, and customised features.
Considering the boosted demand for health insurance policies, it is ideally imperative to opt for health insurance renewal to ensure continued financial security against illness or accidents. Make sure to read the terms of coverage and understand the most beneficial features.