Insurer can withdraw policy if you have withheld information

I am going to apply for a home loan. However, I don’t intend to show a personal loan taken from another bank, as that would make me ineligible for the home loan. Is there any methodology by which my home loan bank will get my personal loan details and reject my home loan application? —Harish Patel
It is not advisable to withhold facts from the prospective lender. In any case, the banks have access to information regarding a potential loan borrower’s loans, repayment history, etc through
credit bureaus such as Cibil.

It is advisable that you declare the information. If you are not eligible for a loan, you can take a joint loan with co-borrowers such as parents or spouse who have stable income.

I am looking for an insurance plan which covers regular diseases such as diabetes and special consultations such as orthopedic treatment for back pain. This includes monthly consultation and drugs. Please advise. —Asvin Joglekar
Most mediclaim policies available in the market will provide reimbursement of your hospitalisation expenses only related to any disease or accident. But there are some special policies which cover OPD expenses as well. Please note here that these expenses are to a certain limit and also, there are certain conditions attached to it. Below is a list of policies which will cover your OPD expenses as well along with your hospitalisation expenses:
1 Bajaj Allianz Tax Gain
2 Apollo Munich Maxima
3 ICICI Lombard Health Advantage Plus
These expenses arise from pre-existing disease such as diabetes and/ or back pain may not be covered for a certain number of years in each policy. In fact it might be difficult to get a policy at all since you have diabetes.

I am 32 years old and am currently taking a very small (min) dosage of high blood pressure control medicine. Otherwise, my health is fine. Do I need to declare this while taking a new mediclaim insurance policy? Suppose I don’t declare it and no claim is made for the period where pre-existing illnesses are not covered (say 4 years), will this be automatically covered after 4 years? —Vikas Singh
It would be better if you disclose the details of your pre-existing disease before buying the policy. Insurance contracts are contracts of utmost good faith. Any suggestions of a material fact (suffering from blood pressure is a material fact) will allow the insurance company to cancel the policy and your premium will be completely wasted. It doesn’t matter how many years have passed since you took the policy.

I have a family floater policy from a state-owned insurer. This is the third year of my policy. My age is 32 years. This year, I was detected with diabetes. I would like to know whether I should tell my company about my illness. Will it affect my insurance policy terms? —Mira Sairam
Since this is not a pre-existing disease, it will be covered completely under your mediclaim policy. You don’ t need to inform the insurance company about the same and it will not effect the terms and conditions of your insurance policy.

The writer is CEO, Apna Paisa, a price & features comparison engine for loans, insurance and investments. He can be reached at hrdna@apnapaisa.com