Look twice at insurance applications

Anand Srinivasan, of Brisk Insurance, said his previous experience working for insurers – he was with AIA for nine years – had shown him that many declined claims could have been avoided if medical questions were answered properly at application time.

He said insurance companies’ application forms were often worded in a way that did not get to the basic information required.

“The first question on most application forms, for example, is, 'Do you suffer from high cholesterol?' Most people on an online application, with no one to guide them or caution them, will answer 'No' if they are not on medication. Theoretically right, but technically wrong. I typically rephrase the question for people. It really should be: 'Did the doctor ever ask you to exercise and diet to bring down your cholesterol?' Many would respond yes, even if they think they are okay because the doctor said cholesterol was under a certain limit and did not prescribe any meds.”

He said posing the questions to clients in different ways could help eliminate accidental non-disclosure.