There are instances where you might be dissatisfied with your insurer. It can be for reasons like features, coverage, premiums or more. But as a policyholder, the regulatory body, the Insurance Regulatory and Development Authority of India (IRDAI) has you covered. You can switch or change your insurance company. Surprised? Let us understand health insurance portability.
What is health insurance portability?
IRDAI introduced portability for all medical insurance plans as a standard feature back in 2011. With this facility, you change your insurer without losing on any accrued benefits. These benefits are in the form of credit gained for pre-existing ailments. Also, it includes the time-bound exclusions or waiting periods under your policy. These benefits are available when you make a change with the same insurance company or among insurers. Continuity benefits like the cumulative or no-claim bonus, health checkups and more are also available under portability of health insurance policies.
The process of portability
You can apply to port your policy only when it is due for renewal. On application to a new insurance company, you shall be provided with the portability form, the application form and the various plans that can be purchased. Any past medical records and claim history is obtained by the insurer from the existing insurance provider. Now the backend work begins for the insurance companies. The current insurer must provide your details through a common portal developed by the IRDAI. On receipt of all necessary information, the new insurance company has to decide within 15 days for the underwriting of the application.
What are the rights of the insurance company?
The primary purpose of the portability feature is to benefit the insured, i.e. you, the insurance companies have also been given the right to reject any port-in request. It is based on the assessment of the risk by the insurance company. If your porting request is rejected, you do not have any option other than to continue with the existing insurance provider.
What are the rights of the policyholder?
Every policyholder i.e. you are entitled to exercise your rights when it comes to portability. This option is not limited to individuals plans but also extends to family health insurance. Further, the new insurance company is liable to provide a minimum of the existing sum assured to you. Also, the benefits that you have accrued with your existing insurance company like waiting periods need to be passed on via the portability feature under the new insurance policy.
What to look for when porting your policy?
#1 Remember your policy’s expiry date: Timing is crucial when it comes to porting your policy. You are allowed to port only when your policy is due for renewal. Moreover, you need to intimate your current insurer well in advance for timely completion of the process. On the expiry of your policy, you will not be able to port it.
#2 Do not lie with your new insurer: While your past information is shared by your existing insurer, it is essential you do not mislead or conceal your medical records with the new insurance company.
#3 Similar policies with varying benefits: It often happens that similar plans with other insurers are available with carrying benefits. Make sure you opt for higher coverage and not take a step backwards.
These are some must-knows about the portability feature of health insurance plans. Whatever are types of health insurance plans, portability is the master key for you.
