Page 63 - MEDICAL AND HEALTH INSURANCE

MEDICAL AND HEALTH INSURANCE

c) experienced symptoms, whether or not it has led to a diagnosis, in the

previous few years.

The time period insurers may use differs among insurers, but generally the

standard time period is five years.

This means that the Insured will be covered for new conditions that he has

not experienced in the previous few years from the date he joins the
scheme.

However, in respect of pre-existing conditions, the Insurer may reinstate

the cover for the pre-existing condition, subject to a qualifying period

provided the Insured is not:

a) receiving treatment for the medical condition

b) taking medication or receiving advice for the medical condition

c) having symptoms of the medical condition

The qualifying period practiced among insurers is generally a two-year
moratorium period.

Moratoria underwriting is mostly used for simple PMI products like

'hospital income' or 'hospital cash' products and the method of sales is

through online application or telemarketing.

The advantages are that the administrative procedures are simple;

applications can be processed on the spot to grant cover as no health

information is needed. Pre-existing conditions of the preceding five years
are immediately excluded and new conditions are covered. It allows pre-

existing conditions to be covered after a two-year moratorium period.

However, there are disadvantages as well; insurers must be very clear in

their product brochure to explain the moratorium period and how it

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