Loading in Health insurance: Know about it!

informed that something called as ‘Loading’ was the reason behind the hike.

In several cases, the hike in the premium after a claim makes it quite difficult for many customers to renew their policy and, not being prepared for such a hike could result in them not having a health cover for sometime or miss out the continuation benefit of their original policy. To ensure that you don’t get a rude shock on renewal of your policy after a claim, understand loading and what to look out for while buying the policy.

What is Loading?

Loading is the amount charged by the health insurance company on your renewal premium when you make claims in your policy. Almost all health insurance companies include loading in their policies. There are different ways in which loading is calculated by the companies.

The different kind of systems for calculating Loading:

1) Loading for every year of claim

Oriental insurance’s Happy Family has loading according to this system. For every year you claim, you will have to pay 5% more premium the next year which will go away if you do not claim that year or again increase by a further 5% for every year in which you make a claim. The maximum loading in this plan is 20%.

2) Loading depending upon the amount claimed

In United’s Family Medicare Policy, the claimant is subjected to loading