Health Insurance: The Importance of Disclosing Pre-Existing Conditions
In the world of health insurance, honesty is the best policy. When obtaining health insurance, it is crucial to disclose any pre-existing conditions you have. Failing to do so can have serious consequences such as claim denial and even cancellation of coverage.
The principle of utmost good faith is a fundamental aspect of insurance contracts. It emphasizes the importance of honesty, fairness, and openness in legal agreements. By adhering to this principle, trust and fairness are established in relationships and deals.
Parthanil Ghosh, President of Retail Business at HDFC ERGO General Insurance Company, states, “Withholding information about pre-existing conditions violates the principle of utmost good faith. Non-disclosure while taking up the policy can result in claim denial and cancellation of cover, creating financial hurdles for policyholders when they need it most.”
Disclosing pre-existing conditions is vital because it allows the insurance company to assess the risk and determine appropriate coverage. Proper disclosure also helps avoid claim denials. Even if you have been paying premiums for years, a failure to disclose pre-existing conditions at the time of policy application can result in claim rejection, leaving you to bear the entire hospital bill yourself.
Siddharth Singhal, Business Head of Health Insurance at Policybazaar.com, explains, “This creates a lose-lose situation, where the policyholder has invested resources in insurance coverage, only to discover it fails to provide the necessary financial protection due to non-disclosure of pre-existing conditions.”
To prevent such scenarios, customers should fill out the proposal form themselves and declare all pre-existing conditions and previous claims taken. Additionally, it is essential to thoroughly read the policy document, ensuring that the declared pre-existing condition is accurately recorded, and understanding the waiting periods and exclusions associated with it.
It is not uncommon for people to withhold information about pre-existing conditions when purchasing health insurance out of fear that their premiums will increase. While it is true that disclosing pre-existing diseases may lead to higher premiums, it is crucial for transparency. Furthermore, some policies may come with waiting periods before coverage for pre-existing conditions begins. It is advisable to research and understand these waiting periods before finalizing a health insurance plan.
In certain cases, health insurance policies may come with exclusions for pre-existing conditions if they are disclosed. Alternatively, the insurance company may offer a different product or, in some instances, deny coverage altogether. In such situations, it is possible to approach another insurer to find the protection needed.
When it comes to health insurance, even the smallest mistake can prove costly. Careful attention to disclosing pre-existing conditions and understanding the terms and conditions of the policy are essential for ensuring proper coverage and avoiding complications down the line.