2. Low Premium Rates

You will have to pay the premium rate at a very low price once you undergo a medical test. The logic behind this scene is that the insurance company fixes the premium rate based upon the risk perception. Antony Jacob, Managing Director and CEO of Apollo Munich Health Insurance says, “Medical tests help determine the risk for the insured person, which allows a fairer pricing that is beneficial to the customer”.

The case may vary at times, like Mr. X has a normal sugar level and another Mr. Y has a borderline sugar level, then the normal person Mr. X will be charged a lower premium for the same cover. Sanjeev Pujari says, “If an insurance company is fully aware of the health condition of the buyer, it will be able to offer him a competitive premium rate.”

Gopal Kumar, principal consultant, Allons Insurance Research & Consultants, “If the premium for a healthy person is 8,000, someone with a health problem would be charged 12,000. However, if the company does not conduct medical tests, it may charge everyone 10,000 uniformly. So, the healthy person will be charged a higher premium for no fault of his.”