ET : Medical insurance policies may cover pre-existing diseases : Oct 11, 2007

Medical insurance policies may cover pre-existing diseases
Our Bureau KOLKATA

    MEDICAL insurance policyholders can now rejoice. Insurance companies are
reviewing claims settlement norms in case of pre-existing diseases. This
means, insurers may soon no longer deprive mediclaim holders of claims under
the clause of "non-disclosure of diseases".

    Accordingly, policyholders who never underwent treatment nor showed
symptoms of a disease before signing a policy document are likely to get the
medical policy benefits in future.

    At present, insurance companies often decline to settle insurance claims
in case policyholders are diagnosed with having contracted the disease prior
to the signing the mediclaim policy.

    This is likely to change. The General Insurance Council of India - an
association of non-life insurers - in consultation with all insurance
players, is working on the appropriate definition of pre-existing diseases.

    "Policyholders who did not undergo any diagnosis or treatment or show
indications of a disease prior to the signing of a contract should not be
considered in the know of having any pre-existing disease," said BD
Banerjee, a member of the committee formed by Insurance Regulatory and
Development Authority (Irda) to examine issues related to health insurance
for senior citizens.

    The insurance regulator formed the committee in May this year in the
wake of a over 200% hike in premium for medical insurance policies after
September 2006. The insurers increased the premium for senior citizens
ignoring the regulator's advice not to hike it more than 70%.

    Mr Banerjee said, "Most private insurers turn down health policies to
people aged above 60. Among the public sector insurers, only Oriental
Insurance, as of now, does not offer health insurance policies to senior
citizens. It has, however, applied for a policy for senior citizens to
 Irda."

    Issues relating to health insurance for the elderly need special focus,
as they are more vulnerable and fall in a higher risk category.

    TIME TO REJOICE

Insurance companies are reviewing claims settlement norms in case of
pre-existing diseases

Policy holders who never underwent treatment nor showed symptoms of a
disease before signing a policy document are likely to get the medical
policy benefits

General Insurance Council of India, in consultation with all insurers, is
working on the appropriate definition of pre-existing diseases

Publication:Economic Times Mumbai; Date:Oct 11, 2007; Section:Personal
Finance; Page Number:19

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