Why online insurers don’t offer Critical Illness policy ?

POSTED BY SK ON January 28, 2014 4:36 pm COMMENTS (6)

Why online insurers don’t offer Critical Illness policy? Any guess?

I understand that online insurers hopes to serve to a class with a better longevity (better access to health services) and that’s why the online premiums are low. Then why is there an aversion to offer critical illness cover with online policies? They offer it offline but not online. Perplexing! Any ideas why?


6 replies on this article “Why online insurers don’t offer Critical Illness policy ?”

  1. ashalanshu says:

    Dear SK, instead of commenting any more, I w’d request you to check the CI rider coverage and plain CI policy coverage to understand the difference between 2.



  2. galib20 says:

    Very logical question. After all critical illness cover must be there for sudden illness, accidents. Nobody plans on getting sick!

  3. SK says:

    Ashal, there will be inclusions and exclusions in CI riders as is there in every policy. One needs to to see the pocity details for this. One basic inclusion is if I fall sick, the CI rider would pay me an agreed sum of money (which the insurer will decide after scritinizing my proposal, seeing my past health record and if required putting me through a medical test).

    Didn’t quite understand how the inclusions/exclusions are relevant here?

    My doubt is simple- if my online isurer can take the trouble of evaluating my health / age / profession details to give me an online term-plan, why can’t he evaluate me for providing CI rider online. (If I apply offline he surely will, but then why not for online?). This is what is puzzling me.

  4. ashalanshu says:

    Dear SK, leave this serious discussion for a while and answer a simple question, do you know under what situation CI ‘ll provide cover and under what, not? I mean inclusions and exclusions in CI rider.



  5. SK says:

    Thanks Ashal! Yes, I meant CI rider.
    I understood what you have said about complexity of underwritting for CI cover which may require detailed health-assessment of the proposer. Your comments give rise to Two thoughts in my mind-

    1. I wonder why the online insurers, with their huge expertise and a battery of experinced underwritters with them, are reluctant to make some extra calculations and offer me a CI cover? Being in the insurance business, how could they afrad of doing underwritting calculations, however complex these may be. Underwritting calculations are done in the back-office in offline mode only, whether it is an on-line or offline policy, then why not extend the facility to online applicants?

    2. This makes me doubt whether, they do proper underwritting for my term-life cover or not? Do they do serious underwritting while offering offline and CI riders, and are not so serious while offering the online version, just relying on my declarations about my health? This is important for me know because for me, the seriousness of underwritting also translates into credibility of my policy.


  6. ashalanshu says:

    Dear SK, I assume you are asking for CI rider and not for plain vanilla CI cover from general insurer. Well bundling of any rider ‘ll increase the prem. outgo as well as underwriting ‘ll also become complex, that’s why, the CI rider is not offered along with online term covers.



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