Insurance policy has various aspects and by looking at your budget, monthly income, premium amount terms and conditions, exclusions, coverage, add-ons, price comparisons across insurers, etc., you can make the best use of it. It not only requires time to consider this but also needs time to know about the feedback of the customers to ensure you don’t get defrauded or lose money. Many times the policyholders don’t read the fine print and get stuck in a situation with unsecure finances. It is suggested to take your time while doing it and make a sound decision aligning your interest and company policies and pick an insurer that covers most or major concerns.
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Here are ten updates to know while choosing a provider
Shorter Waiting Period For Pre-Existing Diseases (PED)
The waiting period for PED has been decreased from the previous 48 months to the current 36 months providing accessibility a year before. It means that the policyholder may access the benefits for pre-existing diseases on all products and variants as well as with the customers with running policies. This perk allows them to file for a claim a year before the initial set time. It will ease the burden and can help the policyholder avoid financial catastrophes.
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Nomination Confirmation At Renewal
Mandatory confirmation of the nominee is required while renewing the policy. Many times there are problems with the nominee that stop the money from reaching the right person, this delay happens due to inconsistent paperwork and lack of confirmation on the policyholder’s part. It may seem like a small change but helps a lot in reaching the right beneficiary at the time of the person’s passing.
Bank Account Details Required At Policy Lobbying
Insurers now require the proposer's bank account details during policy logging to streamline financial transactions, including premium payments and claim settlements, ensuring quick and efficient payout processing.
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Extended Free Look Period and Grace Period
The free look period for policy reviews has been extended from 15 days to 30 days, allowing customers to review and make necessary changes, thereby allowing them more time to make an informed decision. All policies now have a 30-day grace period, with monthly premium payment modes having a 15-day grace period, ensuring active policy coverage.
Pro-Rata Refund
The policy cancellation process, previously based on a short-period grid, has been replaced with a more equitable pro-rata refund system.
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Customer Information Sheet
After signing the proposal form, group insurance policyholders will receive a detailed Customer Information Sheet detailing the policy's benefits, terms, and conditions, providing comprehensive coverage.
Customer Consent
Customer consent, while enrolment, is made mandatory for sharing the details with the third-party service providers. Growing practice on data privacy and security has been more aligned since the enforcement of this feature.
Portability
Policyholders now have the option to port from a group insurance policy to a retail policy across different insurers. The portability will depend on the underwriting guidelines of the policy you are moving into.
Reduced Moratorium Period
The moratorium period—the period after which no claim can be denied based on a pre-existing disease—has been reduced from 8 years to 5 years. The insurance industry is evolving to empower customers with policy flexibility, transparency, and protection. Policyholders must stay informed and leverage these changes to secure the best coverage for themselves and their families. Understanding these updates and their application can help make informed decisions, ensuring coverage aligns with needs today and in the future. Consult with an insurance advisor to clarify how these changes impact policies.
