Page 103 - Ebook health insurance IC27

Sashi Publications

Minus sign is given to unfavourable aspects of risk, whereas plus sign is given to
the favourable one. Some combination of unfavourable health risks are more
dangerous than the overall summation.

For e.g, Tuberculosis and underweight, heart murmur and rheumatism, etc. In
such instances, a supplementary debit for association is added, or the combination
is treated as an unit and conjoined debit is applied. Very often, impairments are
inter-related, calling for the summation of only a fraction of each debit, and in
many cases the debit for one impairment can be wholly included in that of
another.

On the other hand, combination of certain impairments might indicate much higher
morbidity risk than suggested by simple addition of the debits.

(d) Underwriting Decisions -The underwriting process is completed when the
received information is carefully assessed and classified according to risk categories,
based on the following tools :
(i) Accept risk at standard rates
(ii) Accept risk at Extra Premium (Loading) - this is not allowed in all countries,
though
(iii) Postpone the cover for a stipulated period/term.
(iv) Decline the cover
(v) Counter offer ( either restrict/deny part of the cover), and
(vi) Levy permanent exclusions under the policy.

If, any illness is permanently excluded, it is endorsed on the policy certificate
itself, as an additional exclusion apart from the standard policy exclusions.

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