In a move that will benefit customers, insurance companies have begun to either reduce or completely remove the cooling-off period to purchase health insurance for people who were infected with Covid-19 in the past.
As the name suggests, cooling-off period is the duration when a person infected with Covid-19 cannot purchase health insurance.
With the severity of infections now coming down, insurers have begun to review the cooling-off period, which many of them had introduced during the first and the second waves of the pandemic as there were Covid-related complications in several patients. Insurers such as Niva Bupa and Care Health Insurance have already begun to do so.
Amit Chhabra, Head — Health and Travel insurance, Policybazaar.com, noted that the acceptance of Covid has increased significantly amongst insurers. “Earlier, for a person who had been infected with Covid, the cooling-off period was anywhere between 15 days to six months with the average of 30 days. Now, since the start of February, some insurers have begun to reduce this period and more are expected to follow suit,” he said, adding that earlier, insurers were not sure of the long term effects of Covid.
“But in the third wave, the severity of the infection has been much milder with fewer cases of hospitalisation,” he said.
While Care Health Insurance plans have only a seven-day waiting period, lans of Niva Bupa no not have a cooling off period for those infected by Covid-19 and who did not require hospitalisation.
‘Need more awareness’
Bhabatosh Mishra, Director — Underwriting, Products and Claims, Niva Bupa Health Insurance, said there is a scientific, medical and actuarial basis for the decision to do away with the cooling off period along with a behavourial aspect.
“In the third wave, infections have been much milder and hospitalisation only in fewer cases. Complications like fibrosis of the lungs and black fungus are now not seen. Also, there is much more awareness amongst people about health insurance,” he noted.
According to Mishra, the cooling-off period imposed by the company has changed over time, in line with the spread and severity of infections. In case there is a new variant, which is more severe, the insurer would once again review the period. However, there continues to be a cooling-off period for people who require hospitalisation, he said.