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pays for your hospital bills for diagnostics, surgery etc.

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Mediclaim Portability: Pros and Cons

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Having a Health Insurance Policy is the need of the hour especially when the expenses at hospitals run into thousands and lakhs. When an individual buys any Mediclaim policy they are left bewildered and get overwhelmed by the choices available before them. Many a times it happens that individuals get stuck with an Insurer despite of the fact that they do not like the services provided to them. However, this has become a thing of past now as the IRDA, the Insurance Regulatory and Development Authority, now has allowed the Insured to transfer his policy from one company to the other and carry forward their no Claim bonus and their track record.

Under this mediclaim portability, the IRDA has directed that the new insurance company will not have any right to reject a Proposal from the insured people if they do not receive the information from the present insurer. The problem that comes here is how will the IRDA implement this and keep a watch on what is happening. The circular was issued to protect the interest of the insured and has thus, set strict timelines so that the portability happens in a smooth manner. As a result of this, the prospective insurer cannot accept the new mediclaim policy and the existing insurer also closes it in their records.

Many insurance companies have said that getting the required information from an insurance company in such a short span of time is not simple and there is no way of implementing the default acceptance. If the prospective insurance company does not issue a policy they are not liable to pay a claim and such a situation will not be valid in a court too. The policy document is the only proof that a court of law is accepted in our country, and thus, without a valid policy, the insured is in a mess with no help.

It is also seen that in such a scenario the insurance companies propose unreasonable conditions and high amounts of Premium which will obviously dissuade an insured from thinking about porting. Insurance portability is a boon for the insured and the IRDA has undoubtedly taken a step in the right direction. The issue has come in the implementation stage and this is something that has to be given a serious thought to ensure convenience for one and all. The problems of the insurance companies on the administrative backend, and also of the insured have to be understood and a proper action has to be accordingly taken.