That occasional cigarette at a social gathering or a few puffs on a vape during a weekend outing may not appear particularly risky. However, insurers often view even infrequent tobacco use as a risk factor, which can have a noticeable impact on insurance costs.
Unlike what many consumers assume, insurance providers generally do not make a sharp distinction between regular smokers and those who use tobacco only occasionally. As a result, someone who smokes just a handful of times a year may still be classified as a smoker and could face premiums that are 30% to 50% higher than those charged to non-smokers, according to Moneycontrol.
Insurance companies typically define smokers broadly, often including anyone who has consumed tobacco or nicotine products, such as cigarettes, cigars, chewing tobacco, or vaping devices, at any point during the past 12 months.
Individuals who smoke only in social settings or use tobacco products infrequently may still be treated as smokers during the underwriting process, potentially affecting their eligibility and premium rates.
What do insurers say?
“Even occasional or social is relevant. It is best advised that complete disclosure of the information is made. The key issue is not how an individual labels themselves, but whether the information requested by the insurer was disclosed accurately. If a proposal form asks about tobacco or nicotine use, customers should answer truthfully, even if they smoke only occasionally,” Moneycontrol quoted G Srinivasan, MD and CEO of Galaxy Health Insurance as saying.
Srinivasan advised applicants to seek complete clarity from their insurer if they are unsure about the information that must be disclosed and stressed the importance of providing accurate details before submitting an insurance application.
He emphasised that applicants should not overlook information they consider insignificant, as even seemingly minor details can play an important role in the underwriting process and help prevent complications during claim settlement in the future.
Sarita Joshi, Head of Health and Life Insurance at Probus, mentioned that most insurers require individuals to abstain entirely from tobacco and nicotine products for a period of 12 to 24 months before they can qualify for premium rates typically offered to non-smokers, as per the report.
“If you pick up smoking again 4 to 5 years after your policy is active, your existing policy continues as per the original terms and conditions. However, if you try to increase your coverage, renew a term policy, or buy a new plan later on, you must legally declare that you started smoking again. Lying at that stage is considered fraud and can completely ruin a future claim,” Joshi added.
Joshi explained that although nicotine leaves the body relatively quickly, its byproduct, cotinine, remains detectable for several days in urine, blood and saliva. She noted that insurers rely on cotinine testing because it is highly accurate and helps distinguish between individuals who have genuinely quit tobacco use and those who have merely refrained from smoking shortly before a medical examination.
“If living with a triggers chronic asthma, bronchitis, or heart issues, those specific medical conditions will show up on your doctor’s reports. The insurer will look at those health complications during underwriting, which could drive up your rates,” she mentioned.