Page 106 - Ebook health insurance IC27

The Insurance Times

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.

There are several advantages in numerical rating method :
(i) It ensures consistency between the decisions of different underwriters and

of the same underwriter at different times.
(ii) It results in a more uniform treatment of risks because the judgement of the

individual medical selector is steadied and restrained by the use of standards.
(iii) The liability to error is gently reduced by the detailed analysis to which each

risk is subjected and eliminates personal prejudice.
(iv) The work of the medical expert or referee is much lessened because much

of it can be safely entrusted to the trained underwriter.
(v) Careful analysis of difficult/doubtful cases is possible because it becomes

easier with the past experience reference expressed numerically in terms of
a known standard and shadings old favorable and unfavorable conditions.
(vi) Greater speedin handling of largebusiness possible, as majorityofthebusiness
may be handled by trained personnels without the attention of medical experts
at all.

110 Guide for Health Insurance