People usually get assured with the convincing speech by the insurance agent and think that they are clear on each and every aspect of their mediclaim or health insurance and they get traumatized paying annoying medical expenses which are not covered through their mediclaim. Generally, a health policy holds various inclusions and exclusions which a potential insured doesn’t get informed about. Let’s quickly peep through some myths or misconceptions people carry while buying a health insurance or mediclaim.
1) Claim requires minimum 24 hours hospitalization:
The most common myth seen in India that people think that their mediclaim requires at least 24 hours hospitalization to make a claim. Considering it to be a myth as all the procedures don’t require 24 hours hospitalization. Day-Care treatments like Cataract and dental treatments do not warrant a 24 hours hospitalization provided your policy covers the same. 24 hours hospitalization is required only if ‘necessary’ as mentioned in the policy.
2) Exhaustive cover on day care procedures is always good:
Policy holding coverage for least day care procedures or having short list of the same is always better than the policy covering exhaustive list of these procedures. As constantly observed, the policy which covers exhaustive day care procedures may lead to complication and holds maximum chances of rejection of the claim.
3) Medicmlaim ters remain intact once bought:
Health Insurance is a type of contract made between Insurer and Insured. It needs to get renewed at specific interval. The terms mentioned in the contract keep changing while renewing the policy. Insured must keep a watch on the communication from the insurer in this regard.
4) Network hospitals remain the same throughout the policy tenure:
As mentioned earlier, insurance company reserves the sole rights to change network hospitals list as well. Insurance company may add or remove any hospital in the list at the time of policy renewal. Seeking health insurance keeping network hospitals as priority can turn out to be a big disappointment.
5) A known agent will back up my policy:
This is the biggest misconception that potential insured usually carry that if they buy insurance from known agent, he will look after everything. The known agent may change job or may not be available at the time of making claim. Moreover, company will go by its terms and conditions and doesn’t get bothered that insured bought it from a known agent.
6) Pregnancy is one of the exclusion:
Since most claims were observed during pregnancy, insurance companies excluded pregnancy cover. However, this has been changing these days. Insurer has started covering pregnancy as well. There may be conditions like some insurance companies require waiting period to clear pregnancy claims while some would cover only first pregnancy. Albeit, pregnancy is covered conditionally.
7) There is huge difference between online and offline health insurance:
Online insurance policy carries the same terms and conditions as per the offline policy explained by the agent. As far as online insurance policy is concerned, it has low premium value as it doesn’t include agent’s commission. This benefit is passed on to the buyer. There is no harm in buying insurance policy online as far as buyer is reading all the documents pertaining to terms and conditions carefully.
8) Insurance is for tax saving purpose:
This is the basic misunderstanding of maximum buyers that insurance is for tax saving purpose and then for coverage. If you are buying it for tax saving then you will be in trouble. If this is the case then you should be ready for many more surprises when you really need its coverage and make a claim. Insurance should be taken for its main purpose only and that is for insuring lives and valuable assets.