What is the Free Cover Limit or No Evidence Limit in Group Insurance

The free cover limit or no evidence limit in group insurance is the amount of insurance coverage that an individual can receive without providing any evidence of their health status. It means that the insurer will not require the individual to undergo a medical examination or provide any medical information before providing coverage up to a certain amount.

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Purpose of Free Cover Limit

  • The purpose of the free cover limit is to make it easier for individuals to obtain insurance coverage. It is especially helpful for individuals who may have pre-existing medical conditions that would otherwise make it difficult for them to obtain coverage. By providing a certain amount of coverage without requiring any evidence of health, insurers can make insurance more accessible to a wider range of individuals.
  • The free cover limit varies depending on the insurance policy and the insurer. Typically, it is based on the size of the group and the type of policy being offered. For example, a group life insurance policy may have a higher free cover limit than a group health insurance policy.
  • It is important to note that the free cover limit only applies to the initial enrolment period. If an individual wants to increase their coverage at a later time, they may be required to provide evidence of their health status. This is because insurers need to assess the risk of providing additional coverage to an individual with a pre-existing medical condition.

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. 

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. 

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.

Written By: PolicyBazaar - Updated: 20 March 2024
Policybazaar for Business - Group Insurance - Customer Reviews
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4 January 31, 2022
Rahul
Good Deals
We bought corona group health cover for our firm. It is still risky and to make sure the safety for everybody, we bought the cover. It was on a good deal on Policybazaar.
Noida
4 January 30, 2022
Divesh
Quicker Than Expected
I bought group covid insurance for me and my team We are a small start-up and really needed this cover. I bought it from PolicyBazaar which was quicker than I expected.
Muktsar
4.3 January 30, 2022
Ajeet
Health Cover
As we have started travelling again, I had book group Covid-19 health plan for me and my employees. We are travelling frequently now and obviously needed this health cover.
Kanpur
4 January 30, 2022
Avadhesh
Quick Claims
For myself and my staff, I purchased group covid insurance. This cover was critical for us as a modest start-up. I purchased it through PolicyBazaar, and it arrived much sooner than I anticipated.
Gurgaon