Case Study
Background
ABC Corporation is a mid-sized company that provides group health insurance coverage to its employees. The group insurance policy covers both life and health insurance for all eligible employees. The company has recently revised its group insurance policy to include a free cover limit or no evidence limit.
Under the new policy, the free cover limit or no evidence limit in group insurance means that employees can avail of a certain level of insurance coverage without undergoing any medical tests or providing any medical evidence.Â
It means that employees can get insurance coverage without having to disclose any pre-existing medical conditions, which would have been a requirement under the previous policy.
For example, the free cover limit or no evidence limit in group insurance under the new policy is INR 1,00,000. It means that any employee who is eligible for group insurance can obtain insurance coverage up to INR 1,00,000 without having to provide any medical evidence or undergo any medical tests.
However, if an employee wants to opt for a higher level of insurance coverage, such as INR 1,50,000 or INR 200,000, they would need to undergo medical tests and provide medical evidence to the insurer. The insurer would then assess the medical condition of the employee and decide whether to approve or reject the application based on the medical evidence.
In this case, the free cover limit or no evidence limit in group insurance under the new policy is a significant advantage for the employees. It provides them with insurance coverage without having to disclose any pre-existing medical conditions or undergoing any medical tests.
Result
Free cover limit or no evidence limit in group insurance is a benefit that is becoming increasingly popular among companies that provide group insurance coverage to their employees.Â
It allows employees to get insurance coverage without having to disclose any pre-existing medical conditions or undergoing any medical tests up to a certain limit. However, if an employee wants to opt for a higher level of insurance coverage, they would need to undergo medical tests and provide medical evidence to the insurer.
Conclusion
The free cover limit or no evidence limit is an important aspect of the group health scheme. It enables the insured to obtain a certain amount of coverage without any substantial evidence of their health status. Insurance becomes more accessible to major individuals. In addition, it is helpful for insured with pre-existing medical conditions.
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