Friday, December 30, 2016

Private Medical Insurance in Kenya: Understanding What You Are Buying

Buying private health insurance in Kenya is almost similar to buying any other type of insurance policy. In Kenya, private medical insurance is available in a broad range of cover levels at varied premium levels tailored to meet the needs of different consumers.
For instance, there are options around the types of treatments covered, the cover level that apply to those treatments, where such treatments are offered, and the contribution a person is willing to make to the cost of treatment (the excess). Therefore, before any Kenyan chooses a private medical insurance policy, he/she should take time to understand the various options available in order to make an informed choice.

When assessing your options, you should:

(a)     Compare the benefits offered by different Kenyan insurers.

(b)     Compare any cover limits or monetary amounts in every option.

(c)     Consider your unique health needs and requirements.

(d)     Ask questions about how each cover works.

Note: Whenever your employer purchases insurance on your behalf, he/she will make these decisions for you.

Know the Policy Terms and Conditions

In order to ensure that you thoroughly understand what you are covered for and all the limits that apply when you make a claim, you should carefully read the policy terms and conditions. Make sure to contact the insurer to ask questions about the cover. When speaking to your potential insurer, you should find out the following:

i.        Does the policy have monetary limits? Make sure to get a cover that will take care of the portion of treatment you want covered or the specific course of treatment you want covered.

ii.       How does the excess on the policy work? Will it be applied per policy year or per claim?

iii.      Is there a cover for cancer? If there is, what treatments are covered and for which stages of the disease does the cover apply?

iv.      Does the insurer allow clients to enjoy any discounts or extra benefits during policy renewal?

v.       Is there a no claims discount and what happens to my next premium after I make a claim?

Meaning of Private Insurance

It is also important for you not to confuse private medical insurance with other forms of insurance such as income protection, critical illness and health cash plans. By private medical insurance we mean that form of insurance designed to cover the cost of private medical and surgical treatment for “acute conditions” that begin soon after the policy begins.


Acute conditions are defined as diseases, illnesses or injuries that are likely to respond quickly to treatments aimed at restoring the patients’ state of health to where they were immediately before suffering the diseases, illnesses or injuries, or which results in full recovery. Your insurer should be able to explain to you the available coverage options for acute conditions and state clearly whether there is coverage for long-term conditions (also called chronic conditions).

Chronic Conditions are diseases, illnesses or injuries that have one or more of the following attributes: need long-term monitoring, relief of symptoms or control, require rehabilitation, continue indefinitely, have no known cure, or are likely to recur after treatment.

Reasons to Buy Private Medical Insurance in Kenya

Private health insurance is designed to work alongside (not to replace) all the services offered by the National Health Insurance Fund (NHIF). In fact, individuals who purchase private medical insurance coverage still retain the right to use NHIF.

The reasons to buy private medical insurance are:

i.        To enjoy timely access to medical care.

ii.       To get prompt referral to a medical consultant or specialist.

iii.      To get quick admission to hospital.

iv.      To enjoy treatment at a convenient place and time.

v.       To get direct care from experienced medical specialist.

vi.      To enjoy highly advanced treatment options in the best private clinics.

vii.     To enjoy amazing hospital accommodation, including the privacy of an en-suite room, home amenities such as TV, and great comfort and cleanliness.

viii.    PMI also pays cash benefits to insured Kenyans who choose to get treated in public hospitals instead of private ones.

How Does Private Medical Insurance Work?

While insurance policies are usually different, medical treatment typically starts with a referral by a doctor for specialist treatment. Before they begin private treatment, insured persons are required to contact their insurers to confirm whether they are covered for the treatments they seek. It is also important to keep in touch with the insurer throughout the treatment period to ensure that every stage of treatment is covered. Remember that there are treatments for certain illnesses, particularly pre-existing conditions, which may not be covered by the policy.

How to Buy Private Medical Insurance in Kenya

In Kenya, private medical insurance is offered only by insurers and may be purchased:

i.        Directly from the insurer

ii.       Through an independent advisor

iii.      Through an agent, such as retail outlet, bank or building society.

Medical insurance applications can be made:

i.        Over the phone

ii.       By using the internet

iii.      By post

iv.      Face-to-face

Methods of application for medical insurance vary according to insurers. For instance, when you intend to make a purchase through the internet, you should try searching for both “medical insurance in Kenya” and “health insurance in Kenya” as the terms are used interchangeably. When buying directly through an insurer or an agent tied to a particular insurer, you will only be able to access information on policies offered by the specific insurer or agent.  Alternatively, you can purchase your medical plan through an independent advisor who is capable of offering policies from a broad range of Kenyan insurers.  In fact, an independent advisor is able to recommend the right medical cover after carefully assessing your needs.

Completing the Application Form

Whether you purchase your medical plan directly or indirectly, you will be required to fill an application form, answering various questions about your health. The application or any declaration you make to the prospective insurer is very important as it informs the basis of your contract with the Kenyan insurer. Therefore, you ought to answer the questions as completely and accurately as possible, and to the best of your knowledge and belief. If you don’t, your insurer may refuse to pay your claim or even cancel your policy. Hence, when unsure whether something is important to the insurer, you should disclose it. For example, you should disclose any pre-existing health conditions during the application.

Kenyan private medical insurance companies deal with applications for cover in two ways: full medical underwriting or moratorium underwriting. All Kenyan private medical insurers offer the full medical underwriting option, but only a few provide the moratorium underwriting option. Full medical underwriting (medical history declaration) means you are requested to provide details of your medical history as comprehensively and accurately as possible. The insurance company may even write to your doctor for more information, though insurers don’t do so in all cases. Make sure to provide all the information requested by your insurer because if you don’t then your insurer may refuse to pay your claims in future or cancel your policy.

In moratorium underwriting, the insurer does not ask you to provide the details of your medical history. However, the insurer will not cover any condition that you have been treated for, taken medication for, had symptoms of, or asked advice on. That is, the insurer will not cover you for any conditions that existed in the last few years, with 5 years being the usual period. And while the conditions may eventually become eligible for cover automatically, this will only occur when you have not shown the symptoms of, received treatment for, taken medication, or got advice and tests for that condition (or in relation to the condition) for a continuous period of 2 years after the policy commenced. Your insurer will provide you with information on how the moratorium system works.

After your application is approved, the insurer will tell you when the cover starts. Usually, the insurer will send policy documents to you as soon as the policy is set up. You will have at least 14 days from the date of receiving the documents to decide whether the product offered is ideal for you. This duration is called the “cooling-off period”.   If you want to cancel your policy, you must do so within the indicated period and inform the insurer that you intend to cancel your cover. Such a timely cancellation will enable you to get a full refund of any payments you have made unless you have made a claim.

No comments:

Post a Comment