Had signed up for a medical insurance policy for self and spouse on 3rd Aug, 2024 and paid upfront the premium of Rs 29K and declared honestly the existing ailments of my spouse who is undergoing medical treatment for the same since the last 2 years.
After repeated follow ups, a member from the underwriting team at ICICI Lombard connected with me on 17th Aug, 2024. An email from the Lombard team on 18th Aug, 2024 stated that they are unable to process the medical insurance for my spouse and can offer the same for self only. This proposal was rejected by me on 19th Aug, 2024. The refund of Rs 29K was received in my account on 29th Aug, 2024 after several follow ups.
Why does Lombard seek upfront the premium payment and subsequently take several days to complete the underwriting process and arrange a refund to the potential Client if the medical insurance policy is being denied to the Client on medical grounds?
Just imagine the huge amount of cash the Lombard team collects upfront from potential clients on a daily basis and the interest gains from the same as it is a clear 2 - 3 weeks processing time for the underwriting to issuance of the policy OR arranging a refund to the Client?
The Lombard team’s tag line "Nibhaye Vaade" is an eyewash.
As customers, why should we have a waiting period of 2 - 3 weeks after we have paid the premium payment upfront?