Insurance Article, The Insurance Times 2022, The Insurance Times September, 2022

Health Insurance – The Unhealthy Preamble

Please do not confuse the word Preamble in insurance to the Preamble of our Constitution. Both are different. The insurance companies use the word preamble in theirPolicy Wording. These days and in order to save on paper, the insurers request us to download Policy Wording from their website. However, it is another matter that they do not mention exactly from where in the website this policy wording to be downloaded leaving the policyholder clueless!

In this article, we shall examine the Preamble or an Introduction or Foreword or Preface of seven insurance companies. Why seven insurance companies? Number & the insurers both were a random pick. The companies thus chosen are: 1) Aditya Birla Health Insurance Company 2) Edelweiss General Insurance Company 3) ICICI Lombard General Insurance Company 4) IFFCO TOKIO General Insurance Company 5) Liberty General Insurance Company 6) Life Insurance Corporation of India 7) Star Health and Allied Insurance Company.

 

Aditya Birla Health Insurance Co. Limited

“This Policy has been issued on the basis of the Disclosure to information Norm, including the information provided by You in respect of the Insured Persons in the Proposal Form, any application for insurance cover in respect of any Insured Person and any other information or details…”

EDELWEISS HEALTH INSURANCE

This is a contract of insurance between the Company and the Policyholder which is subject to the realization of the full premium in advance and the terms, conditions and exclusions to this Policy. This Policy has been issued on the basis of the Disclosure to Information Norm, including the information provided by Policyholder in respect of the Insured Persons in the Proposal and the Policy Schedule.

ICICI Lombard General Insurance Company Limited

“ICICI Lombard General Insurance Company Limited (“We/ Us”), having received a Proposal and the premium from the Policy Holder named in Part I of the Policy (hereinafter referred to as the “Policy Schedule”) and the said Proposal and Declaration together with any statement, report or other document leading to the issue of this Policy and referred to therein having been accepted and agreed to by Us and the Policy Holder as the basis of this contract…”

IFFCO-TOKIO GENERAL INSURANCE COMPANY

This policyis evidence of the contract between youand us. The proposal along with any written statement(s), declaration(s) of yoursfor purpose of this policyforms part of this contract

Liberty General Insurance

“Liberty General Insurance (hereinafter called the “Company”, “We, Our, or Us”) will provide insurance cover to the person(s) (hereinafter called the “Insured”, “You, Your, or Yourself”) based on the Proposal made and agreed premium paid within such time, as may be prescribed under the provisions of the Insurance Act, 1938…”

LIFE INSURANCE CORPORATION OF INDIA

“THE LIFE INSURANCE CORPORATION OF INDIA (hereinafter called “the Corporation”) having received a Proposal along with Declaration and the first premium from the Proposer and the Principal Insured named in the Schedule referred to herein below and the said Proposal and Declaration with the statements contained and referred to therein having been agreed to by the Proposer and…”

STAR HEALTH AND ALLIED INSURANCE COMPANY

The proposal, declaration and other documents if any given by the proposer shall be the basis of this Contract and is deemed to be incorporated herein. In consideration of the premium paid, subject to the terms, conditions, exclusions and definitions contained herein the Company agrees as under.

Anybody can question why we choose these companies only? They are chosen at random. Please do not conclude we love Aditya Birla Insurance Company and hate Tata AIG General Insurance Company. These seven insurance companies Preamble is appended for information. A bit tedious, but request you to read for the reason that YOU are paying huge premium and not indemnified if there were to a health claim!

Aditya Birla Health Insurance Company’s Preamble of Health Insurance Policy starts in this manner: This policy has been issued on the basis of the Disclosure to Information Norm. Now, you may command me to stop here and demand to know: what is Disclosure to Information Norm? We searched the policy wording my dear friends; did not find it in their health insurance policy.

Edelweiss Health Insurance policy also refers to the Disclosure to Information Norm. ICICI Lombard does not refer to the Disclosure Norm. In case of IFFCO TOKIO General Insurance Company– the Policy Wording do not refer to anything at all. Further, the mistakes you see in their preamble are not committed by us. They are verbatim copied. They are in hurry for business. Liberty General Insurancestartsyet another issue; they do not refer to Disclosure to Information Norm…on the contrary this is the only company of the seven refers to the Insurance Act,1938. LIC and Start Health and Allied InsuranceCompanies do not refer to Disclosure to Information Norm and the Insurance Act either.

What is disclosure to information norm? It simply means the following gibberish: ‘The policy shall be void and all premium paid hereon shall be forfeited to the company in the event of misrepresentation, misdescription or non-disclosure of any material fact.’

Sir / Madam, you paid the premium…your hard-earned money. Pray tell what these words mean? The Insurers have huge Insurance librarieson misrepresentation, misdescription, non-disclosure, material fact, forfeiting and void. You were never explained and probably, you will never be explained.

If you are interested in knowing more then you need to contact us and read future articles. See you in our next article. Stay healthy.

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