Page 93 - Ebook health insurance IC27

Sashi Publications

Individual Group

Except spouse and dependents, insured's Members may become eligible for or
coverage normally begins with the cease eligibility for coverage any time
inception of the contract and ceases with during the policy period
its termination

Individual premiums are determined by The actual group experience of the larger

the characteristic of the person being employers is the most significant factor

insured in setting the premium

Use of genetics in underwriting

 Genetics a discipline of biology, is the science of genes, heredity, and variation in
living organisms. The fact that living things inherit traits from their parents has been
used since prehistoric times to improve crop plants and animals through selective
breeding.

 The uses of genes are being expanded to new areas and insurance is one of them.
 Maybe in future underwriter will be able to study or use this science for the health

risk assessment of an individual. It may act as an effective tool to the underwriter
and actuaries for the health assessment.
 Genetic abnormalities may either be inherited or acquired. Though many people
believe use of genetics may not be correct in insurance parlance since it may reveal
private data about an individual and it's secrecy may be revealed. It may have long-
term social impact.
 Insurers may also resort to cream skimming, thereby selecting only healthy lives and
the whole concept of insurance may derail.
 Due to public concerns use of genetics in insurance is very much restricted. Only in
Britain in some cases it is allowed to use genetic in insurance underwriting where the
sum assured of policies are more than 5 lakh pound.
 It isstill in its nascent stage foruseintheinsuranceindustry. Maybeif suitablemeasures
are taken it may be effectively utilised in insurance underwriting in time to come.

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