I’ve held a medical health insurance coverage value ₹5 lakh for the previous decade. However, I now imagine that this protection is insufficient, and I want to improve it to ₹50 lakh. Additionally, I had beforehand made a declare of roughly ₹4 lakh below my present coverage 4 years in the past. How do I improve the duvet? Will I be eligible to take action with the identical insurance coverage firm or will I have to search for different insurers?
—Name withheld on request
You have three choices right here. You should buy a brand new coverage with a canopy of ₹50 lakh and discontinue this previous coverage. But should you made this declare due to some critical sickness with lasting affect, your well being situation may need worsened. Your new coverage could have preliminary ready intervals on particular diseases and pre-existing ailments. Also, as you may have already made a declare within the current coverage, a brand new insurer may be reluctant to present you a brand new coverage with such excessive cowl quantity. You may also lose out on cumulative bonus when you’ve got any. Hence, it’s not really useful to discontinue your current coverage.
Alternatively, you possibly can proceed your current coverage and ask your insurer to improve your sum insured to ₹50 lakh within the subsequent renewal. This will be certain that you get all continuity advantages in your preliminary sum insured of ₹5 lakh. But it is going to be on the discretion of your insurer to extend your cowl quantity relying in your present well being situations and insurer’s underwriting practices. If your insurer considers it to be an enormous danger, it would decline your improve request however your current coverage with preliminary cowl quantity will proceed.
In that case, you possibly can proceed the prevailing coverage together with your present insurer and search for a top-up plan with cowl of ₹50 lakh and a deductible of ₹5 lakh. You can get this top-up plan both out of your current insurer or another insurer of your alternative. But right here too, the insurer will perform underwriting for the top-up cowl and remaining determination of proving you the duvet will depend upon the insurer. But this technique is really useful as this doesn’t affect your current coverage and in addition provides you flexibility in selecting top-up cowl.
Nidhi Verma is founder and chief government officer at Algates Insurance.
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Updated: 11 Sep 2023, 10:58 PM IST
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