Principal sum

You can change the insured amount of the health plan at the time of renewal


My husband had taken out unit-linked insurance (Ulip). After his death, the request was raised automatically and was rejected. The company said it had not disclosed other details of its policy. Can I still get a claim amount? The form was filled out by the officer and even the candidate’s name was misspelled.

—Praveena

In several cases, the contracting authorities canceled the rejection of the claim if the non-disclosure of the insured would not have affected the insurer’s decision to underwrite. Reporting of other policies is important for financial underwriting. Insurers are generally comfortable issuing coverage for up to 10 to 15 times a person’s annual income. In your case, if the total sum insured for all policies is less than the above threshold, you will have a solid basis to present your claim to the Insurance Ombudsman. In any case, the company is obligated to pay the current value of the Ulip fund.

The argument that the intermediary completed the form is not strong. All proposal forms must be signed by the proponent. In addition, the proposal forms are included in the policy copy package.

I had taken out health insurance for ??5 lakh for my father, but the expenses for a recent hospitalization were about ??10 lakh. With a few months left in the year, is there a way to increase coverage?

—Prabhat

Changes to the sum insured are only authorized by insurers when the policy is renewed. In addition, it is not possible to increase the sum insured in the middle of the insurance year after the declaration of a claim. However, you need to check if the policy has a rollback feature. This function allows you to reset the face amount once the base face amount has been exhausted.

If you decide to increase the sum insured at the time of renewal, be aware that the insurer may apply new waiting periods on the increased sum insured. Most health insurance policies provide a waiting period of two to four years for pre-existing conditions. The condition concerned would fall under the pre-existing disease for the increased amount insured, and would therefore be subject to this waiting period.

Abhishek Bondia is Managing Director and Managing Director of SecureNow.in. Queries to [email protected]

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