Observation period refers to medical insurance and critical illness insurance and health insurance. When the insured applies for insurance for the first time, the insurance company will not pay for the expenses incurred by the insured's illness within a period of time from the effective date of the contract.
The health insurance liability will not take effect until the waiting period or observation period is over. Setting the observation period in the insurance clauses is mainly to better protect the interests of bona fide policyholders and the insured, effectively prevent insurance fraud such as "insuring against illness" and reduce the risks of insurance companies.
Different types of insurance have different observation periods. For example, the waiting period of life insurance and critical illness insurance is generally 90- 180 days, medical insurance is 30 days, and the waiting period of accident insurance is no more than 24 hours. Because accidents are unpredictable, it is best to take effect after purchase.
Judging from the duration of the observation period, in general hospitalization medical insurance, the observation period is generally 60 days or 90 days; In critical illness insurance, the observation period is generally 90 days, 180 days, one year.
Therefore, the insured or the insured must read the insurance contract carefully and confirm the insurance observation period.