Buying Health Insurance Online? Small Clicks That Create Big Claim Problems

Mumbai-based marketing manager Riya Sen bought her health insurance in under ten minutes, between meetings. She compared plans online, chose a policy that looked comprehensive, and filled in the proposal form on her phone.

One question slowed her briefly: “Do you have any pre-existing conditions?” She had been on thyroid medication two years earlier, but her reports had been stable for months. The form offered no explanation of what qualified as a pre-existing condition. A reminder flashed on the screen — “Complete your purchase now to lock this price.” She clicked “No” and moved ahead.

Eighteen months later, she was hospitalised for a thyroid-related complication. Her claim was rejected because of non-disclosure of a pre-existing condition. The policy she had bought so efficiently failed her at the moment she needed it most.

Such incidents reflect a quiet but growing issue as more Indians buy insurance digitally quickly, independently, and often without fully understanding the consequences of each click.

The Hidden Risk In Speed

Online insurance has expanded access and transparency. It has empowered consumers to compare prices and features without pressure. But it has also removed the pauses where questions used to be asked and clarified.

Ventakesh Naidu, CEO at BajajCapital Insurance Broking Ltd, explains: “Digital insurance buying is a positive shift. But insurance is not an impulse purchase. When speed replaces understanding, the real cost shows up later, at the claim stage.”

Many claim rejections trace back not to fraud, but to misunderstanding. Small errors made during purchase like unchecked assumptions, skipped disclosures, unread exclusions often become decisive during claims.

Pre-Existing Conditions: The Most Missed Disclosure

Most people don’t intentionally hide medical history. They simply don’t know what qualifies as “pre-existing.” Conditions that were diagnosed but feel inactive, medications taken briefly, or borderline test results are often overlooked.

Online forms simplify questions, but insurers rely on hospital records at claim time. If medical history appears there but not on the proposal form, it becomes grounds for rejection.

The safer approach is counterintuitive: disclose more, not less. Full disclosure may raise premiums or introduce waiting periods but it preserves the claim.

Naidu adds, “Insurance works on trust and disclosure. Paying a slightly higher premium is far better than discovering, years later, that protection exists only on paper.”

Exclusions and Waiting Periods Don’t Disappear Online

Another common mistake is assuming “comprehensive” means immediate and universal coverage. Most policies have waiting periods for specific treatments, surgeries, or pre-existing conditions. These details are rarely highlighted during checkout. Claims are often rejected not because treatment wasn’t genuine, but because it fell within a waiting period buried deep in the policy wording.

Reading exclusions isn’t exciting but it’s essential. Understanding what isn’t covered matters as much as what is.

Auto-Fill Errors and Checkbox Fatigue

Digital convenience encourages speed. Auto-filled names, addresses, and dates often go unchecked. A spelling mismatch between the policy and hospital records can delay or complicate claims. Incorrect lifestyle declarations like smoking, alcohol use, past hospitalisation invite scrutiny later.

Every online proposal form is a legal declaration. It deserves the same attention as a signed document.

Premium-Led Choices Can Undermine Protection

Comparison platforms default to sorting by lowest premium. The danger is subtle: affordability becomes the decision driver, not adequacy. A Rs 5 lakh cover may look economical, but in many cities, it barely covers one serious hospitalisation. Lower premiums don’t reduce medical costs, they only reduce how much insurance will pay.

The Overlooked Step: Reviewing the Proposal Form

After purchase, insurers email a proposal summary. Most buyers never open it. Yet this document is what insurers refer to during claims.

Errors caught within the freelook period can be corrected. Errors ignored become permanent.

When Online Buying Works Well

Buying insurance online works best when treated as a considered decision, not a quick transaction. Time spent understanding terms, disclosing honestly, and reviewing documents dramatically improves claim outcomes.

Naidu puts it simply: “Technology should make insurance easier, not weaker. Convenience must be matched with clarity - otherwise protection breaks down when it’s tested.”

At last, online insurance isn’t risky. Uninformed online insurance is. The clicks that feel minor during purchase, the boxes ticked quickly, the documents skipped, the assumptions made are the same ones examined closely during claims.