Now Reading: Health insurance waiting periods: why mid-year switch may not help
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Health insurance waiting periods: why mid-year switch may not help
The waiting period in health insurance is the time a policyholder must wait before coverage for certain conditions begins. Expert Ankit Gupta, speaking to Business Today, warns that switching policies mid-year to…
The waiting period in health insurance is the time a policyholder must wait before coverage for certain conditions begins. Expert Ankit Gupta, speaking to Business Today, warns that switching policies mid-year to cover an upcoming surgery can backfire: a new insurer may reject the proposal, impose fresh waiting periods, or decline coverage for a condition already diagnosed. This is because an insurer can review medical reports and consultations before deciding to offer coverage, and may add conditions or co-payments.
Even a policy advertised as "zero waiting period" may not cover a surgery already planned under the previous policy. Policyholders who have already served most of their waiting period are better off continuing their existing cover until renewal. The Insurance Regulatory and Development Authority of India caps waiting periods at 36 months. Switching is safest at renewal through portability, which preserves credit for time already served. Until a replacement policy is issued and confirmed in writing, the existing policy should be kept active.
Indian Opinion Analysis
Health insurance in India is regulated by the Insurance Regulatory and Development Authority of India (IRDAI), which caps the maximum waiting period for pre-existing conditions at 36 months for most policies. The distinction between a "waiting period" for new illnesses (typically 30-90 days) and one for pre-existing conditions (up to 48 months under older rules, now capped at 36 months) confuses many policyholders. When a surgery is already planned, porting the policy at renewal preserves credit for time already served on the waiting period, but cancelling and buying fresh restarts the clock entirely. The IRDAI's portability guidelines, introduced in 2011, allow customers to switch insurers without losing waiting-period credit, but the new insurer retains the right to assess and impose conditions. Patients with imminent surgeries should verify in writing from both old and new insurers what is covered before any change takes effect.
Source: businesstoday.in
This brief was synthesised by AI from the source linked above.
