What happens to the health insurance policy after a claim is filed?
After a claim is filed and settled, the coverage of your medical insurance policy is reduced by the amount that has been paid out on settlement. For Example: In January you start a policy with coverage of Rs 5 Lakh for the year. In April, you make a claim of Rs 2 lakh. The coverage available to you for the May to December will be the balance of Rs.3 lakh.
However, if you have opted for the reinstatement option, the sum insured of your policy will be reinstated to the same value. Of course, reinstatement features needs to be added to your policy by charging prorata premium.