Health Insurance Portability

Ms. Geeta, a 29-year old working professional, had purchased a health cover a few years back. She now wishes to switch to another insurance provider due to greater benefits at an affordable premium. Ms. Geeta wishes to know about the process of doing so, the benefits of porting to a new insurer and the aspects she needs to keep in mind while making the switch.

Understanding Health Insurance Portability

Health insurance portability refers to the process of switching from your existing insurance provider to a new insurer. Customers may transfer their policy without worrying about losing benefits accrued under their old policy.

The reasons for porting a health insurance could be due to numerous reasons, some being opting out of a co-payment clause from the previous insurer, past experience with claims services, need for competitive premium and relatively higher coverage from the new insurer.

Benefits of Porting Your Health Insurance Policy

Porting your health insurance policy offers a plethora of advantages. You may enjoy the benefit of customization and choose a plan to suit your current health needs. Moreover, you can enjoy accrued No Claim Bonus (NCB) of your previous policy (if any) as sum insured under the new plan. Additionally, you may even opt for riders to enhance your coverage.

The good news is that the Insurance Regulatory and Development Authority of India (IRDAI), the statutory insurance regulatory body in India, allows you to enjoy the credit gained for pre-existing condition(s) in terms of the waiting period. Besides, portability shall be applicable to the sum insured under the previous policy and also to the enhanced sum insured if requested by the insured to the extent of the cumulative bonus acquired from the previous insurer under the previous policy. It is also important to note that you may port not only your individual health insurance policy but also your family health insurance policies.

The Process of Health Insurance Portability

According to the guidelines by IRDA, individuals are allowed to port their health policies only at the time of renewal. It is, therefore, necessary to request a shift from your existing provider at least 45 days before the renewal date. You are also required to notify the new insurer by submitting the duly filled portability form and proposal form.

The insurance company will do its due diligence by obtaining information about your health plan from the IRDA website or from your previous insurer. Upon successful assessment of your application, you may begin to enjoy benefits under the new insurance policy.

Factors to Consider While Porting Your Health Insurance Policy

It is necessary to keep a few things in mind while porting your insurance plan.

1. Research on The Features Offered

   You may want to do your research on various plans offered by insurers and opt for the one that suits the features for your health needs at a suitable price.

2. Your Medical History

   It is best to disclose your medical conditions before considering health insurance portability.

3. Claim Settlement Process

   Another aspect to consider while making the switch is the health insurance claim settlement process. Identify if the new insurer makes settlements through reimbursement or cashless facility. You may also seek the list of network hospitals from the new insurer.