Keep health cover comprehensive and contemporary by adding riders

Tata AIG General Insurance recently introduced five new riders that can be purchased with its health insurance policies that provide more than 60 benefits to customers. Health and general insurers alike are increasingly expanding their suite of riders.

 

“By purchasing a rider, a customer can get additional features and benefits that are not part of the main policy. Riders complement the base policy and make the entire health insurance proposition more comprehensive,” says Parthanil Ghosh, director & chief business officer, HDFC Ergo General Insurance.

 

Enhance base policy

 

As medical technologies and customer needs evolve, riders can help a base policy remain relevant. “A customer’s base policy purchased a few years ago may lack coverage for treatments that have since become important (like robotic surgery). These gaps can be addressed by adding a rider,” says Santosh Puri, senior vice-president, health product & process, Tata AIG General Insurance. 

 

Some base policies have restrictions, such as co-payment or room rent sub-limit. A rider can overcome these restrictions.

 

Certain customer needs vary by age and gender. Including these, like maternity cover, in a base policy is impractical. Individuals can meet their specific needs by buying those riders.

 

Popular riders to consider

 

Critical illness rider: It provides a lump sum if the policyholder is diagnosed with a critical illness.

 

Personal accident rider: It covers expenses arising due to accidental injuries and offers compensation for permanent disability and accidental death.

 

OPD cover: This rider covers outpatient treatments, including doctor consultations, diagnostic tests, pharmacy, and physiotherapy. Families often spend Rs 12,000-15,000 annually on OPD expenses, which this rider can cover. “The OPD benefit is especially useful for families with young children that have to visit the doctor frequently,” says Siddharth Singhal, head–health insurance, Policybazaar.com.

 

Woman care: It supports women through various life stages, covering issues like early puberty, infertility, pre- and post-menopausal challenges, etc.

 

Mental well-being: It covers consultations with a psychiatrist, screenings, and diagnostic tests for mental health issues.

 

Some riders enable customers to cope with medical inflation.

 

Restore benefit: It replenishes the sum insured an unlimited number of times once it is exhausted.

 

Cumulative bonus: It keeps the no-claim bonus intact. “Now there are riders where if the claim is below a threshold level, the bonus is not taken away,” says Puri.

 

Points to pay attention

 

Assess your needs and choose riders that align with your health, lifestyle, and finances. “Make sure you do not buy riders that duplicate the coverage available in the base policy,” says Ghosh.

 

Compare rider costs and potential benefits across insurers. Also, remember that like base policies, riders may have waiting periods and exclusions. “Understand all the terms and conditions to avoid an unpleasant surprise at the time of claim,” says Ghosh.

 

Reassess the relevance of the riders you hold periodically. Maternity cover, for instance, may no longer be needed once the family is complete. Also be aware of changes in features and premiums of riders, and note that some riders may be discontinued.

 

“Avoid riders that come with a discount but lead to restrictions in coverage, such as sub-limits on treatment or room category, or which lead to co-payment,” says Puri.

 

Singhal emphasises the importance of buying a few essential riders. “Buy riders that reduce the waiting period for pre-existing diseases, increase the sum insured at a fast pace, and reduce out-of-pocket expenses (like consumables rider),” he says.