Health Insurance Renewal Rules: Are you worried about premium increases for new illnesses? What are the rules?

Health insurance policies are often available for a year, or sometimes even longer. Therefore, it's crucial to renew them every year before the policy expires. However, many people become concerned when, at the time of renewal, the insurance company asks whether there have been any changes to their health or lifestyle over the past year.

This question leaves many wondering if the company is using this information to increase premiums or refuse to renew the policy. Recently, the discussion surrounding the "material change" clause has intensified, as some insurance companies have begun including it in their policy documents.

According to an ET report, this clause has been found in some policies of companies like ICICI Lombard, Acko, SBI General, ManipalCigna, Reliance General, Raheja QBE, and Zuno General Insurance. So, let's understand what this clause is, what its implications are, and what your rights are according to IRDAI?

What is a 'material' clause?

Simply put, if you've discovered a new illness or health condition after purchasing a policy, some companies may ask you to disclose it during renewal. But could disclosing this information increase your premium or lead to policy changes? Let's find out further.

Can disclosing a new illness increase your premium?
There's a lot of confusion about this, but experts clearly state that no, it doesn't. According to Nitin Gupta, Senior VP at Acko, if you're simply renewing a policy, there's no need to disclose a new illness. Health information may only be asked if you're expanding coverage, such as increasing the sum insured or adding a new rider.

He further explained that the insurer cannot increase your premium due to a new illness. They can neither add any exclusions nor reduce coverage.

Can a claim be rejected if you don't disclose a new illness?