Day 1 Newborn Coverage Makes No Sense – Here's Why And What You Should Know
Published by Outlook Money
Abhishek Kumar's role: Quoted
Abhishek Kumar, founder of SahajMoney, said such policies have three key problems, noted that congenital conditions are excluded and a newborn must be added within 30–45 days, and pointed to policies with explicit NICU cover and employer group cover as options.
What Abhishek Kumar said
What are the main problems with 'Day 1' newborn cover in health insurance policies?
I see three key issues with these policies. First, NICU stays are often treated as 'complications' and left out, with separate waiting periods attached. Second, many congenital conditions, which account for most NICU admissions, are excluded even though the policy claims to cover the newborn. Third, the cover often depends quietly on maternity waiting periods, such as nine months, even after you have been paying premiums.
What does newborn cover usually leave out, and when must the baby be added to the policy?
There are further limits to keep in mind. Preterm births and NICU admissions may not be covered at all, and treatment for congenital anomalies, such as heart defects, is excluded. Parents should also note that the newborn has to be added to the policy within 30 to 45 days of birth for the cover to become active, so this step should not be left for later.
What can new parents look at instead of relying on thin Day 1 newborn cover?
Since 2022, a few IRDAI-compliant policies have offered explicit NICU cover, so parents can explore those. Group health cover through an employer is another option to consider, as it often has fewer exclusions for newborns. Finally, I suggest checking which network hospitals have their own NICU, because that matters when you make a reimbursement claim.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on insurance
This March 2025 Outlook Money article examines 'Day 1' newborn cover in health insurance, explaining that it usually pays only for limited hospitalisation for complications, often for the first 90 days and up to a cap, leaving out vaccination, routine check-ups and many congenital conditions. It looks at alternatives such as family floater plans, employer group cover and policies with explicit NICU cover. It includes comments from Abhishek Kumar.
Publisher source
Day 1 Newborn Coverage Makes No Sense – Here's Why And What You Should Know
