Checkups before a medical policy: Hassle or life-saver

Most insurance providers insist on pre-policy check-ups for first-time policy buyers above the age of 40 -45 years. Some companies even insist medical check-ups for those above 35 years. This is to ensure that they are free from pre-existing diseases. But this mandatory checkup never sounded an attractive proposition for policy buyers — whether it is life insurance or health insurance.

But recently, a couple of private health insurance companies have come up with products that require no pre-policy medical check-ups. This was good news for many people who are in their quest to get a policy without having to spend time undergoing a medical checkup.

Is it good to consider such policies and do they have any apparent advantages Here is a look at everything you should know about policies requiring no pre-policy medical check-up.

What happens when you opt for a policy without a medical check-up When you opt for a health insurance policy without any medical check-up, the insurance company seeks a declaration from you about any pre-existing diseases. Such products may also come with a short waiting period of around two years for pre-existing diseases.

If you are having any pre-existing disease, you are expected to disclose it in your declaration and your premium will be fixed accordingly. If however you are hiding your pre-existing disease, you are not only doing an unlawful act by giving a false declaration, but your claim can also be rejected if the insurance company finds out that you have suppressed such information at any stage. Any small evidence of fraud or suppression of a pre-existing disease will lead to a complete denial of claim, even in future.

If you opt for a health insurance policy without a pre-policy medical and sign an undertaking without knowing you have a medical problem, your ignorance can go against you when filing for a claim.

Some diseases like diabetes and hypertension are known as silent killers, and there is a good chance that people with borderline disease may not be aware of their medical conditi-on. But even an unintentional wrong declaration can go against you and your claim will be rejected by the insurance company.

Get ready to pay a higher premium Insurance policies that come with no medical checkup have a higher premium as compared to policies with pre-medical tests. This is because insurance companies have to safeguard themselves against the higher risk of claims. So you end up paying a higher premium.

Why do companies come up with such policies If opting for a policy without a mandatory pre-policy medical comes with so many negatives, why do insurance companies offer them

The reason is that insurance companies are able to save costs of medical examination for each policyholder. On an average, a pre-policy medical can cost anywhere between Rs 3,000 to Rs 5,000 for each individual. By eliminating the pre-policy medical test and relying on self-declaration of policyholders, insurance companies save time and money.

Thinking one can get away by hiding their existing diseases or save time by not opting for a medical test would only be detrimental for the future.

How pre-policy medical check-up can be advantageous instead Instead of choosing a policy that comes with no pre-policy medical, you are better off opting for one with a medical test beforehand. For example, if your pre-policy medical test clears you of any disease and you file the claim for that disease at a later stage, the insurance company cannot deny your claim on the ground that it was a pre-existing one or the medical tests were inconclusive.

A policy that comes with a mandatory pre-policy medical check will come at a lower premium as compared to a policy without the need of a medical.

Insurance companies pitch policies with no pre-policy medical check-up by stressing its convenience, and many people fall for it. While the ease of availing such policies cannot be ignored, insurance experts are of the opinion to avoid it for a smooth claim procedure. Such policies more expensive,and the risk of claim rejection is also high.

The writer is the CEO of BankBazaar.com