Why you should not avoid pre-policy medical check-ups

Religare Health Insurance recently launched a product targeted at those wary of pre-policy health checks. Medical check-ups are seen as hurdles by insurance-seekers with pre-existing illnesses as it can lead to increased premiums and even denial of coverage.

According to Anuj Gulati, MD and CEO, Religare Health, people over 45 typically undergo regular health checks. "We encourage them to declare complete information while applying for insurance to ensure a smooth claims experience,” he says. The product also comes with a short waiting period for pre-existing diseases of two years. Other products that have relaxed check-up requirements include Oriental Insurance’s Happy Family Floater policy and Star Health’s Red Carpet policy for senior citizens.

However, insurance experts do not recommend them unless alternatives are non-existent. "It is always better to opt for medical check-ups as it gives you an update on your health and a reference point for insurers,” says Sudhir Sarnobat, CEO, Medimanage.com. In the absence of medical tests, disputes could arise at the time of claim settlement, on grounds on misrepresentation or concealment of ailments by policyholders. If the insurer proves concealment of the illness, your claim could get rejected.

Such plans usually charge a high premium. Moreover, they comes with restrictions that are stiffer than in regular covers. Besides, while the process of buying a policy without medical underwriting may seem simple, you will still need to spell out a lot of details—simple and quick issuance is not a given.