||In case, policy had any break in between, then it will not cover the pre-existing disease. As per prevailing norms, if a customer renews his policy within 15 days of the grace period, the continuity benefits including cover for pre-existing diseases are provided. If he fails to renew within grace period, the old policy is cancelled and new policy is issued. However, in group insurance policies, it is a common practice to cover pre-existing diseases on payment of extra premium. |
Since it is not viable to collect and analyse medical history of each and every member to be included in group insurance policy, insurers underwrite the extra risk by charging extra premium. These policies are generally bought by small and medium organisations, NGOs, government and semi-government organisations. In global context, insurers cover pre-existing disease in retail segment as well. The premium charged by them to cover pre-existing disease though, is significantly higher than what they charge a regular policyholder.