How to port a health insurance plan?

Health insurance portability enables customers to switch to a different health insurance company with their current health insurance policies in place. It makes sure that when policyholders transfer to a new health insurance provider, they do not lose any advantages they have accrued over several successive renewals. When renewing a policy, a person has the option of porting it to another insurance provider.

What is Health Insurance Portability?

The process of changing your current health insurance policy to a new plan or health insurance provider without losing any collected benefits, such as No Claim Bonus (NCB), waiting period credit, free medical exams, etc., is referred to as portability in the context of health insurance. In the event that clients are dissatisfied with their current policy or insurance company, it gives them the opportunity to transfer to a better health insurance provider. Every policyholder is entitled to portability as long as their prior health insurance was continuously renewed. The policyholder must apply to the insurance firm where he or she intends to transfer their health policy at least 45 days prior to the date on which the present policy's premiums are due in order to take advantage of this service.

Health Insurance Companies

Advantages & Disadvantages of Health Insurance Portability

Take a look at the below mentioned advantages and disadvantages of porting your health insurance policy:

Advantages:

Disadvantages:

Common Reasons That Lead To Health Insurance Portability

If a portability application does not adhere to the terms, conditions, and policies of the insurance provider, it may be rejected by IRDAI. Applications for portability may also be denied for the following reasons:

Health Insurance Portability Rules

Health insurance portability is governed by a set of guidelines that must be observed by both policyholders and insurance providers, according to the IRDAI. Here are some of the regulations regarding health insurance portability:

1. Permitted Policy Types

   An insured can port only similar policies. For example, if a policyholder is entitled to a reimbursement policy, then he can only port to another reimbursement policy or from one top-up plan to another. However, a family or an individual health plan can also be ported into a similar policy.

2. Company Type

   A policyholder can port his/her insurance plan from any general or specialized insurance company to the other.

3. Renewal

   Health Insurance Portability is allowed only at the time of renewal. Also, it is important to renew your health plan on time without any breaks to take advantage of the same.

4. Intimation

   Those who wish to port their health insurance first need to inform the existing insurance company in writing, which should be provided 45 days before the renewal date of the current insurance policy.

5. Acknowledgement

   Within three days of the application, the company will inform you regarding your portability request.

6. Porting Charges

   There are no charges for Health insurance portability.

7. Premiums And Bonuses

   As per the insurer's specific underwriting norms, they are free to levy premiums. Therefore, the premiums may vary. However, those who come under the high-risk category may have to pay a higher premium on porting.

8. Grace Period

   In case the application of porting is under process, then the applicants are eligible for a grace period of 30 days. During this time, the insured has to pay the premium on a pro-rata basis to avail of this feature. As per the IRDA guidelines, the insured cannot be forced to pay the premium for the whole year.

9. Sum Insured

   Policyholders are allowed to ask for an increase in the minimum sum insured at the time of portability. However, its approval depends upon the insurance company.

10. The Waiting Period of Pre-existing Diseases

    If the insured is going with the option of increased coverage, then the waiting period associated with pre-existing diseases has to be served as per the new policy.

How To Port Your Health Insurance?

Read the following steps and port your policy hassle-free.

1. Fill all the required forms that are associated with insurance portability.
2. Your newly chosen insurer will check all your details within seven days.
3. The company will pass all the required information via IRDA’s portal (in the appropriate format) for shifting the policy.
4. The company will process the same further as per the underwriting norms (after they have all the information).
5. Finally, the company will process your application and will offer a proposal within a span of 15 days.
6. However, if they take extra time, they will become bound to accept the request.

Documents That Are Required For Porting

You need to present the below-mentioned documents to the insurer for hassle-free processing of your portal application: