Smart Insurance Moves
Pankaj Singh
| 24-01-2025
· Information Team
Hey Lykkers! The world of insurance is constantly evolving, and 2025 brings several significant updates that could enhance the way you manage your insurance policies.
If you’re looking to ensure better health coverage, streamline your payments, or increase transparency, these changes are here to make your insurance experience smoother and more beneficial. Here are 10 essential rule changes you should know to maximize your policy’s potential:
1. Shorter Waiting Period for Pre-Existing Diseases
One of the most impactful updates for health insurance is the reduction in the waiting period for pre-existing conditions.
Previously set at 48 months, it has now been shortened to 36 months. This change allows policyholders to access benefits for pre-existing conditions a full year earlier. The best part? This new rule applies to all products and variants, including those with active policies.
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2. Mandatory Nomination Confirmation at Renewal
When renewing your insurance policy, you are now required to confirm your nominee details. This seemingly small change can have a big impact, ensuring that your policy benefits are directed to the correct person upon your passing, without delays caused by documentation issues.
3. Bank Account Details at Policy Registration
To simplify financial transactions such as premium payments and claim settlements, insurers now require your bank account details during policy registration. This makes the process faster and more efficient when it’s time to process any payments or claims.
4. Extended Free Look Period (30 Days)
The free look period, which gives you a chance to review and make changes to your policy, has been extended from 15 days to 30 days. This extra time provides you with a better opportunity to fully understand the policy terms and ensure it aligns with your needs.
5. Longer Grace Period for Monthly Payments
For all types of insurance policies, the grace period has been extended to 30 days. For policies with monthly premium payment modes, the grace period is now 15 days. During this time, your policy coverage remains active, giving you more flexibility to manage payments.
6. Pro-Rata Refund for Policy Cancellation
Previously, if you canceled your policy after the free look period, you received a refund based on a short-period grid. This has now been replaced with a more customer-friendly pro-rata refund system, ensuring a fairer and more transparent refund process.
7. Customer Information Sheet for Group Policies
For those with group insurance policies, a detailed Customer Information Sheet will now be provided to the master policyholder. This document will outline the full benefits, terms, and conditions of the policy, allowing members to make informed decisions.
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8. Explicit Consent for Data Sharing
In line with growing concerns about privacy, insurers will now require explicit consent from policyholders for sharing personal data with third-party service providers. This rule change places greater emphasis on data privacy and security, ensuring your information is protected.
9. Portability from Group to Retail Policies
Policyholders can now port their coverage from group insurance to retail policies across different insurers. This portability option makes it easier to tailor your insurance plan as your needs change, providing greater flexibility.
10. Reduced Moratorium Period for Pre-Existing Diseases
The moratorium period, during which claims related to pre-existing conditions can be denied, has been reduced from 8 years to 5 years. This change ensures you have more time to access coverage for pre-existing conditions if they arise after the moratorium period ends.
The insurance industry is evolving to empower consumers, providing more flexibility and transparency. To take full advantage of these rule changes, consult with your insurance advisor and make sure your coverage is aligned with these updates.