Mind the waiting period in insurance1 min read . Updated: 05 Oct 2020, 10:21 PM IST
During the cooling off or the initial waiting period, the insurer may not honour any claim except accident-related ones
To avoid frauds and misuse of health insurance, insurers have a waiting period before they start covering pre-existing diseases (PED) and other specified diseases.
The waiting period usually starts right after the cooling period, which usually lasts a month. During the cooling off or the initial waiting period, the insurer may not honour any claim except accident-related ones.
Insurers don’t admit claims related to a PED or specified diseases during the waiting period. A PED is a condition, an ailment or an injury that was diagnosed up to 48 months before a customer applies for a policy. The waiting period for PEDs can be up to four years, depending on the insurer and the policy you choose.
Most premium policies, where the cover is high (above ₹20 lakh), typically, have a lower or no waiting period for PEDs.
There are some ailments or conditions that are difficult to detect in medical tests, which customers need to take during the policy-buying process, and the treatment for such diseases could also be postponed for some years. For example, arthritis. Insurers could have a waiting period of up to two years for specific diseases like these.
Some insurers may lower the waiting period if the customer is willing to pay a higher premium.