During the policy term, a policyholder has requested to switch from non-smoker to the category of non-smoker. Will the insurer update its policy term and charge the increased premium or cancel its policy? Will the claim be paid by the insurer in future?
—Name withheld on request
A life insurance policy cannot be modified in the mid-term. There is no provision to transfer the policy from non-smoker to non-smoker if the policyholder becomes a smoker after the policy is in force.
However, once you have informed the insurer about the change in status from non-smoker to smoker, verification is likely to be done by the insurer. Insurers would like to find out whether smoking status was declared accurately at the time of policy proposal. If the insured is convinced about the false declaration, they can proceed to cancel the policy.
I have had a family health policy since 2017. On 1st September 2020, the policy expired and no notification or reminder was sent to me to renew it. Now, is it possible to continue with the same policy as I have already covered the waiting period tenure for pre-existing diseases?
—Name withheld on request
Health insurance policies generally have a grace period of 30 days. If the policy is renewed within this period, the completed waiting period is carried forward. However, after the grace period, generally, the policy cannot be renewed without a new waiting period.
However, you can request the insurer, citing lack of notification, to revive the policy for you.
In some cases, insurance companies make exceptions and reinstate the policy.
Abhishek Bondia is the Principal Officer and Managing Director of SecureNow.in.
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