Apart from the renewal cost going up, there are a couple of other things that happen once the insured files a claim from his/ her insurance. What are they? Read on to find out.
1. Reduced Benefit
Since the coverage an insurer is supposed to pay to the insured is already defined, the sum Insured is reduced corresponding to the amount already paid in the settlement for the remaining time of the policy year. For instance, if the total coverage available was Rs 5 lakh and 3 lakh has already been claimed, the coverage for the remaining time (before the policy is renewed) would be Rs 2 lakh.
Apart from that, the policy provider may even ask the policyholder to renew the insurance the following year. If that happens, the renewal will be done at an increased premium. This concept or process is known as ‘loading’ and is a practice followed by almost all insurance provider. That said, every insurance provider has a different way of levying the loading charges and thus, you must check with your insurer for clarity on this matter.
2. Daily Hospitalization Benefit and Surgical Benefit
There are different kinds of insurance policies and family floater is one of them. However, the only difference between all the other insurance schemes and family floater scheme is, the latter provides financial assistance at various installments during the entire course of the treatment.
Some of the health policies are ULIP-based: limited premium payment period yet whole-life policy term. Hence, if your family floater is ULIP-based, there will be no changes in daily hospitalization and surgical benefits.
Related Topic: What Happens to the Health Policy Coverage Once a Claim Is Filed
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