Insurance firms may add a Covid+ve rider
Covid-19 survivors experiencing health issues will have to undergo medical tests and wait for up to three months before they can buy a life insurance policy. Insurers such as Tata AIA Life and Exide Life have imposed a three-month mandatory waiting period before issuing a policy to Covid survivors. Karthik Raman, chief marketing officer and head, products, Ageas Federal Life Insurance, said: “Life insurers may ask additional questions and maybe slightly more vigilant in their decision if the individual has recently returned from an international trip, or is planning to travel abroad shortly, especially to a country that is severely affected by Covid-19.” If a policyholder does not provide the right information, the life cover can also be rejected by the insurer. Insurance claims are often denied due to pre-existing medical conditions, family medical history, hazardous occupation,etc.
THOSE HAVING HEALTH ISSUES WILL HAVE TO UNDERGO TESTS AND WAIT UP TO THREE MONTHS TO BUY INSURANCE
NEW DELHI: Covid-19 survivors experiencing health issues will have to undergo medical tests and wait for up to three months before they can buy a life insurance policy. Insurers such as Tata AIA Life and Exide Life have imposed a three-month mandatory waiting period before issuing a policy to Covid survivors.
Karthik Raman, chief marketing officer and head, products, Ageas Federal Life Insurance, said: “Life insurers may ask additional questions and maybe slightly more vigilant in their decision if the individual has recently returned from an international trip, or is planning to travel abroad shortly, especially to a country that is severely affected by Covid-19.”
If a policyholder does not provide the right information, the life cover can also be rejected by the insurer. Insurance claims are often denied due to pre-existing medical conditions, family medical history, hazardous occupation, risky lifestyle choices or provision of fraudulent documents at the time of policy application.
Thus, in the case of Covid-19, the insurer might request for additional medical tests as well to identify the risk category of the applicant as life insurance contracts are solicited by ‘Uberrimae Fidei’, or issued in ‘utmost good faith’.
This clause requires the individual to disclose all material facts in the proposal form, including pre-existing medical conditions. “So, if you have suffered from Covid, life insurance can be offered post three months of the medical examiners sign off,” said Sanjay Tiwari, director, strategy, Exide Life Insurance.
Generally, such people are put in the sub-standard life category, comprising those having a greater risk to their lives compared to others, with regards to health, family medical history, and occupation.
Yusuf Pachmariwala, executive vice president and head of operations, Tata AIA Life, said: “As per medical guidance, diabetes, lung diseases, other chronic diseases and so forth make people most susceptible to the fatal coronavirus.”
A Covid survivor will get life cover but with a waiting period ranging of one-three months or more, depending on the severity of the infection, and subject to prevalent underwriting checks as required.