For New Life Insurance policy, Covid-recovered Have to Wait For 3 Months
MAS Team | 21 January 2022
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People who have recovered from Covid and wish to take a life insurance policy may have to wait for up to three months before they can avail it.
 
Until now, as a standard practice, all insurance companies had the waiting period requirement for various ailments and diseases.  And now, the insurers insist that this condition of waiting period should be applicable to Covid recovered patients applying for life insurance.
 
Life insurance companies are insisting on making the waiting period requirement applicable for coronavirus cases like other ailments.
 
Normally in insurance, the term waiting period means a specified period for which certain risk covers are not provided and the cover kicks in after that period after the premium is paid For instance, in the case of Corona Rakshak policy, the waiting period is 15 days from the date of commencement of the first policy.However, in the case of Covid-19 cured persons, the waiting period for buying a life insurance cover will be three months if he/she was hospitalised and one month in case of home quarantine, according to some insurance agents. 
 
The waiting period will be counted from the date on which the prospective policy buyer is certified as Covid-19 negative.
 
According to industry experts, the waiting period for individuals who have recovered from coronavirus infection is being insisted upon by insurers against the backdrop of high mortality rate related to coronavirus infection, which the entire world has witnessed over the past two years or so.
 
The life insurers are trying to safeguard themselves against death claims due post Covid-19 complications.On what basis the waiting period has been arrived at is not known. With the pressure to show performance, growth in topline, there may be some life insurers who accept the premium upfront from Covid-19 cured persons and provide the risk cover after the waiting period. In other words, charging a premium for a full year and providing cover for nine or 11 months as the case may be Altering the period of cover during the first year is a major change in the policy condition and life insurers should inform the IRDAI upfront in the case of 'file and use' products.
 
Whereas many life insurance companies are insisting on a straight mandatory three-month waiting period for Covid recovered people wanting to buy a term insurance policy.
 
Depending on the severity of Covid infection and whether hospitalization was required or not, insurance companies are also demanding extra medical tests including chest X-rays before giving term insurance policy to those who don't have it yet.
 
This trend, which seems to have started after the massive devastation caused by the second Covid wave last year, now seems to have become a full fledged policy for many insurance companies. 
 
Covid recovered applicants wanting to buy a term plan may have to compulsorily fill a so-called Covid declaration form which, among other things, asks whether the insurance buyer was affected by the virus in the last 90 days. Further, the test results are also required, depending on the severity of the Covid infection.