Gopal and Gauri are discussing the recent GST cut on health insurance, but the interaction veers towards a specific niche of waiting periods which are critical: moratorium and pre-existing disease waiting period or PED.

Gopal: The recent cut in GST taxes must be driving a mad rush to buy health insurance. I too would like to join the rush, but I am stuck on the aspect of waiting periods.

Gauri: Yes, the big one is the dreaded PED. If you have a condition or received treatment for a condition any time before policy issuance you must declare them to the insurer. The insurer takes these into account and fixes a price for issuing you a policy. These are known as PEDs. Any health claim on account of a PED will not be met by the insurer in the PED waiting period, which is three years.

Gopal

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