In today's time, most of the things we do in our lives revolve around our wellbeing and overall health, which has led to abrupt expansion of the health insurance industry. Health Insurance is a coverage that is given to you by the insurance company in order to meet your future uncertain medical expenses.
Fortunately, the Insurance Regulatory and Development Authority of India (IRDA) came up with a convenient method of "Health Insurance Portability", that offers relief to those policyholders, who are not happy with their current health insurance providers.
Health insurance portability is a facility in which one can port their current health insurance policy from the present insurer to a different insurer, without losing existing benefits. By using portability features, you can also port from an individual health plan to a family floater plan.
We all know how vital health insurance is. Therefore, if you opt for health insurance portability, it is advisable to keep in mind the below points:
Now that you know the common reasons that force most people to switch health insurance providers, let’s discuss the pros and cons of health insurance portability.
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.
Permitted Company Type
A policyholder can port his/her insurance plan from any general or specialised insurance company to the other.
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.
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.
Within three days of the application, the company will inform you regarding your portability request.
There are no charges for Health insurance portability.
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.
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 of the whole year.
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.
The Waiting Period of Pre-existing Diseases
If the insured is going with the option of the increased cover, then the waiting period associated with pre-existing diseases has to be served as per the new policy.
However, if they are taking extra time, they will become bound to accept the request anyhow.
Documents Required Of The Previous Insurer
Documents Required For The New Insurer
It's true that IRDA has allowed customers to port their insurance policy, but at the same time, it has given the authority to the insurance company to either reject or accept the application. The insurance company can reject the portability request based on below-mentioned reasons:
* Irrelevant or incomplete information* Delay in submission of documents* Faulty claim history* Inaccessible policy documents* Break in policy renewal
In the end...
Insurance Portability is an effective yet amazing option for those policyholders who are not satisfied with their current insurer or plan. Before you opt for portability, it’s safe to go through the terms and conditions of the health plan. Do not haste in opting out for a new plan unless you know everything about the policy.
Written By : Naval Goel
Last Updated : June, 2019
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