Summary of this article
Buyers should disclose pre-existing health conditions and hospitalisation while buying a policy.
One should report accurate personal details and occupational hazards.
Policyholders should state smoking and drinking habits to ensure valid coverage.
Whether you are a young person or a middle-aged individual, if you are buying a health insurance policy, it is important to disclose all crucial information to the health insurer. That’s because the insurance company decides whether to issue you a policy or reject your application on the basis of the material disclosure in the proposal form. In other words, material facts are such information that could influence the insurer’s decision to issue the policy, determine the premium, impose exclusions, or decide other terms and conditions of the policy.
Here are three important material facts that you must clearly mention to your health insurance company at the time of buying a policy.
Information Related To Pre-Existing Health Conditions And Hospitalisation History
Pre-existing conditions, such as diabetes, blood pressure, asthma, heart ailments, or any other disease that may cause hospitalisation in the future need to be disclosed to the insurance provider. If you have a history of hospitalisation for an invasive procedure or a serious ailment, then it should be disclosed too at the time of buying a health policy. Health insurance companies do not provide any list for choosing the material facts. They rely on the principle of ‘utmost good faith’ and assume that the insurance buyer will disclose all the crucial information.
Personal Details And Occupational Hazards
You should clearly mention your correct personal details, such as your height, name, sex, weight, and address because such information may impact the premium on your health policy. Similarly, if you work in an environment that involves occupational hazards, such as extreme stress, physical danger, or exposure to chemicals that may impact your health, you must disclose this information to the health insurance company.
Lifestyle-Related Information
At the time of buying a health insurance policy, you must also disclose your habits that may impact your health. For instance, if you are a smoker or consume alcohol, then it may cause health issues that could lead to hospitalisation. Therefore, it is important to disclose such habits to the insurer at the time of buying a health policy. Depending on your disclosure, the health insurance company may impose a loading on your insurance premium to cover the risk under the disclosed circumstances.
Disclosing material facts to the insurance company is crucial at the time of policy purchase, while porting the policy, enhancing coverage, or at the time of policy renewal if the insurer asks you to furnish specific details. For instance, if you were a non-smoker at the time of buying a health policy but became a smoker after a few years, then you must disclose this significant change in your habits to your health insurance company during policy renewal or porting if the insurer requires such disclosure based on a specific questionnaire.
The author is an independent financial journalist
This article is intended solely for educational and informational purposes. It should not be construed as investment, financial, legal, or tax advice. Readers are advised to consult an appropriate professional before acting on the information provided.
(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
The author is an independent financial journalist
This article is intended solely for educational and informational purposes. It should not be construed as investment, financial, legal, or tax advice. Readers are advised to consult an appropriate professional before acting on the information provided.
(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
