At 50 I want to take a top up mediclaim policy. Although my cholesterol levels are under normal range, my doctor has advised me to take medicine to lower it so as to reduce whatever the risk factor. Should I tell this to my insurance company? What if I do not disclose this and cross the 2-3 years of waiting period before any health complication regarding heart comes up?

Ans: When purchasing a mediclaim policy, it is crucial to disclose all relevant health information to your insurance company, including your current medication for cholesterol, even if your levels are within the normal range. Here's why:

1. Transparency and Honesty: Insurance contracts are based on the principle of utmost good faith (uberrima fides). Failing to disclose complete information can be considered a breach of this principle, potentially leading to the rejection of claims.

2. Pre-existing Conditions: Insurance companies often have specific clauses related to pre-existing conditions and waiting periods. Disclosing your medication helps ensure that your policy accurately reflects your health status, and any pre-existing conditions are appropriately considered.

3. Claim Rejection Risk: If you do not disclose your medication and later file a claim related to a heart condition, the insurance company may investigate your medical history. Discovering that you did not disclose your medication could result in claim denial or policy cancellation, especially if it relates to a condition you were aware of but did not mention.

4. Legal and Financial Repercussions: Non-disclosure can lead to legal and financial consequences, including denied claims and possible penalties, leaving you without coverage when you need it most.

5. Customised Coverage: Providing complete health information enables the insurance company to offer a policy that best suits your needs, potentially providing better coverage options or terms specific to your health situation.

To ensure you are fully covered and avoid complications:

• Disclose All Health Information: When applying for the policy, include all relevant details about your health, including medications and doctor's advice.
• Read the Policy Document Carefully: Understand the terms and conditions, especially regarding pre-existing conditions and waiting periods.
• Consult Your Insurance Agent: If you have any doubts or need clarification, consult your insurance agent or a financial advisor to ensure you are fully informed and compliant.

By being transparent about your health status, you can secure your mediclaim policy effectively and avoid potential issues with future claims.