If Arogya Sanjeevani proves well-liked, insurers could properly start providing instalment choices on different well being insurance policies
As straightforward as 1,2,3…or 12 month-to-month instalments, if you want. We are speaking in regards to the potential way forward for your medical insurance premiums, the place chances are you’ll choose to pay in instalments by way of the yr.
The standardised medical insurance coverage — Arogya Sanjeevani — was designed by the Insurance Regulatory and Development Authority with many attention-grabbing options. Every normal insurance coverage or medical insurance firm is remitted to supply it from April 1, 2020.
One of them is the long-felt want for instalment fee of premium, versus solely annual funds. This permits us as an insured to match our premium fee to money inflows. It is very of nice worth in instances like the current pandemic, when earnings and even jobs are at stake, and one want to stagger bills.
In Arogya Sanjeevani, the policyholder can go for half-yearly, quarterly or month-to-month fee of premium and in addition automate the funds utilizing the auto-debit or ECS mode. If this proves well-liked, one can see insurers providing this selection on different well being insurance policies.
Options for instalment premiums in Arogya Sanjeevani function with some situations, just like annual premium funds we’re aware of.
There is a grace interval of 15 days for paying the instalment premium. The caveat, nevertheless, is that throughout the interval between due date of premium and precise receipt of premium by the insurance coverage firm, you’ll be uncovered.
But the great factor is that, even if in case you have used your grace interval to the fullest, your advantages of ready interval for pre-existing situations, and particular ready interval for remedy of specified situations are totally protected. Neither will there be any curiosity prices if the instalment premium will not be paid on the due date.
However, in the event you fail to pay throughout the grace interval, your coverage will lapse and, together with it, any accrued advantages corresponding to ready interval or cumulative bonuses. Your alternative shall be solely to begin one other hospitalisation coverage, afresh.
Most of us are used to creating month-to-month funds of every kind together with hire, society dues, EMIs on house loans, college charges, cellphone, broadband, electrical energy and a bunch of different utility payments.
When it involves investments, life insurance coverage premiums, systematic funding plans for mutual funds and even month-to-month public provident fund or recurring deposit funds are quite common. So, instalment premium for medical insurance can easily be included into the funds checklist as soon as the wage is available in. Once insurers begin providing it on varied insurance policies.
The catch is, what in the event you neglect? The price of that within the case of medical insurance shall be larger than within the case of different monetary investments.
The freedom has now been given and it’s as much as us to do not forget that with freedom comes important accountability. There is not any level in forgetting to pay your instalment premium and shedding medical insurance protection.
(The author is a enterprise journalist specialising in insurance coverage & company historical past)