Insurance Awareness - Health Insurance
Under IRDAI regulations, what is the primary reason for imposing a waiting period on pre-existing diseases in health insurance policies?
Under IRDAI regulations, what is the primary reason for imposing a waiting period on pre-existing diseases in health insurance policies?
easy Q1 of Q15
Step-by-Step Solution
Step 1: Understand the purpose of waiting periods
Waiting periods prevent immediate claims on illnesses that existed before the policy started, protecting the insurer.Step 2: Analyze options
Option C correctly states the reason: to prevent immediate claims on known illnesses at policy inception. Option A (identity verification), B (premium reduction), and D (sum assured increase) are unrelated to waiting periods.Final Answer:
To prevent immediate claims on known illnesses at policy inception → Option CQuick Check:
Waiting period ensures insurer is not liable for pre-existing conditions immediately, maintaining policy sustainability.
Quick Trick: Remember: Waiting period protects insurer from known risks at start.
Common Mistakes:
MISTAKES- Confusing waiting period with identity verification or premium reduction.
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