'Disclose PEDs to insurers'

For now, hiding a preexisting disease (PED) from an insurer before buying a health policy might seem to be an advantage with a lower cost premium.

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However, the reality is that it can lead to rejection of the claim or even policy cancellation. In both cases, the policyholder must pay exorbitant medical bills from his/her pocket. When one buys cover, he/she is entering into a contract with the insurer. All the medical insurance policies are developed on a legally-binding principle - 'utmost good faith' so the insurer and the policyholder must be transparent and honest. While buying the policy, the policyholder has an obligation to disclose all relevant details regarding his/her health conditions, including PEDs. If even a small piece of information on PEDs is not disclosed, it means the policyholder has violated the fundamental legal principle, thereby forcing the insurer to reject claim or even cancel the policy itself. The premium the policyholder has paid till then will go down the drain.

What are PEDs?