Benefits of Health Insurance Portability

Today, many people are aware of the term 'portability' with reference to switching from one telecommunication service to another. However, not many know that a health insurance policy also offers the benefit of portability. You may have more than one reason to switch your policy to a different insurer, and portability gives you the flexibility to port your policy at any time while keeping the benefits intact.

Health insurance portability is the option that enables you to change the current insurance company to avail of better services or a better health insurance plan from another insurer. The portability feature gives you the flexibility of not being stuck to the insurer from whom you bought the policy initially. You can port your insurance to get wider coverage, enjoy better services, or lower your premium.

Switching your policy to a new insurance company has many advantages, including:

• When you switch your policy, the new insurer may allow you to customise your policy. Thus, you can make the necessary changes to suit your specific needs and get maximum benefits from your policy.
• Suppose you have an accumulated NCB (no claim bonus) on your existing policy. In that case, the new insurer will calculate the discount and carry forward the same while issuing you a new policy. Thus, health insurance portability allows you to continue with the benefits of NCB.
• Apart from carrying forward the accumulated NCB, the health insurance portability does not affect your other policy benefits. You can retain all the benefits guaranteed by your previous insurer and avail new ones with the new insurer.
• Since the health insurance market is immensely competitive nowadays, the insurers want the policyholders to buy their policy by offering a lower premium and increased benefits while porting the policy.

The health insurance porting process may vary from insurer to insurer based on your existing policy's terms and conditions. You must get in touch with your current insurer and the new company to know the exact set of documents you require to port the policy. Generally, the insurers require the policyholders to submit the following documents to initiate the porting process:

• Proof of identity
• Residence proof
• IRDA portability form
• Documents related to the previous claim (if applicable)
• Proposal form
• Documents of medical history
• Declaration of no claim (if applicable)

Now that you are aware of the benefits of porting your health insurance policy, switch your policy to a new insurer, and enjoy the benefits of better coverage and lower premium.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.