Written by Amit Chhabra
The final 12 months have been a game-changer for the medical insurance business as consciousness round medical insurance elevated by a number of folds. The 12 months 2020 noticed medical insurance develop into probably the most precious section by way of premiums collected and lives insured as over 300 million lives had been insured beneath medical insurance from April – September 2020.
The two key elements which have pushed most Indians to enroll in medical insurance insurance policies are – excessive prospects of hospitalisation because of COVID-19 and extreme remedy price in personal hospitals. While there was a sudden drop within the variety of COVID-19 optimistic instances from October 2020 – March 2021, the state of affairs is worrisome once more as India continues to report over 1.70 Lakh COVID-19 optimistic instances for the reason that final one week.
Amidst the apprehension and uncertainty regarding the current state of affairs, we should consider the dangers if the worst occurs. Evaluating the danger primarily includes creating an sufficient monetary blanket to repay the hospital dues when you or your loved ones members fall prey to the virus.
For individuals who purchased medical insurance throughout this time final 12 months, it is vitally necessary for them to resume the coverage earlier than the expiry date and for individuals who have but not bought a well being plan, they have to not delay the choice any extra. Akin to all different kinds of insurance coverage insurance policies, a medical insurance coverage additionally must be renewed yearly to reap medical insurance coverage advantages with none trouble. You can simply renew your medical insurance coverage on-line inside just a few clicks from the insurer’s web site or any of the web insurance coverage market locations.
It is completely your prerogative on how and from the place you want to get your medical insurance coverage renewed however be certain to resume the coverage earlier than it expires. Here are a number of the distinguished disadvantages of lacking out in your medical insurance renewal date.
Interruption in protection
Until your medical insurance coverage is energetic, the insurer will proceed to supply you sufficient protection and can cowl hospitalisation bills for the remedy of any ailment. However, when you fail to resume your medical insurance on the renewal date, the coverage turns into inactive.
Under a medical insurance plan, any declare crammed whereas the coverage is inactive is not going to be entertained by the insurer and will likely be straightway rejected. Though each insurer gives a grace interval of 30-days to revive the expired insurance coverage coverage, you continue to can’t make any declare in the course of the grace interval or until the time your coverage once more turns into energetic.
If you might be hospitalised whereas your coverage is inactive, the insurer is not going to present any protection. And, when you fail to resume the coverage even within the grace interval, your coverage will lapse and the one resolution you’ll be left with is to purchase a recent medical insurance cowl.
Moreover, given the numerous rise within the variety of COVID-19 optimistic instances every day, you could not take the danger of staying uncovered beneath a medical insurance plan as you by no means know when you might want the protection.
Waiting interval
When you purchase a brand new medical insurance coverage, it comes with a compulsory ready interval that you’ll want to serve earlier than making submitting a declare. While there isn’t a ready interval on hospitalisation because of an accident, there’s a 15-days ready interval on hospitalisation because of COVID-19 and a 30-days ready interval for all different illnesses. For pre-existing illnesses and different frequent circumstances like maternity cowl, Knee Replacement Surgery, Cataract and plenty of extra, there’s a ready interval ranging between 2 – 4 years.
Now, if you don’t renew your coverage on the renewal date and even in the course of the grace interval, your well being cowl will lapse and you will have to purchase a recent medical insurance coverage. Under a brand new medical insurance coverage, you will have to serve the ready interval for various circumstances once more and in case throughout that interval when you get hospitalised for the remedy of that individual situation, your insurer is not going to pay for the hospitalisation bills. You will lose all the advantages earned by serving the ready interval and might want to begin the method once more.
No-claim bonus
Yet one other distinguished benefit that you could be lose when you fail to resume your medical insurance cowl with the time interval is a no-claim bonus. It is just not all the time necessary that you probably have purchased medical insurance protection, you’ll make a declare yearly and for each no-claim or claim-free 12 months, the insurer awards you with a no-claim bonus.
The bonus will be within the type of an enhanced sum insured of your present medical insurance coverage or low cost on medical insurance premium on the time of renewal. You can solely avail the advantages of the no-claim bonus on the time of renewal nonetheless when you fail to resume the coverage inside the given time interval, you can’t benefit from the NCB advantages.
The creator is Head-Health & Travel Insurance at Policybazaar.com. Views expressed are that of the creator.
