Categorized | Health Insurance

must know about portability

You buy a Health Insurance pinning on to the hope that it is going to improve your life for good with little or no knowledge about what is health insurance. The trouble brews when you are not happy with the services of the company. That’s when you will shift your Policy to a new company. Then, a question arises as to why the new company should provide you with all the benefits that you enjoyed with your previous insurance company. With the emergence of the new concept called portability, the trend has changed. Thanks to expert suggestions and the support of Insurance Regulatory and Development Authority (IRDA), things have begun to work in favor of customers and they have realized what health insurance is. With portability, customers can feel free to shift their existing health insurance policies to any service provider and still continue to enjoy all the previous benefits.

Concept of Portability

The concept of portability became effective on October 1, 2011. Let’s take a look at how things worked prior to portability. Before 01/10/11, if you tried to transfer your health policy from company A to company B. The latter would have treated you as a new customer. Even if you would have paid your insurance Premium on time with your previous company, you would still have to make your premiums right from the start with your new company. All the credits that you would have earned with company A will no longer be taken into account. You will have to prove your loyalty once again.
 
Portability is definitely a boon to such customers. According to IRDA, customers have the right to enjoy the benefits of their previous health policy along with the Pre-existing conditions and time constraints. The only important point to be noted is that the previous Mediclaim should have been maintained consistently devoid of interruptions.
 
Points To Be Noted If You Hold a Mediclaim which is portable

Credit for pre-existing health conditions

Carry forward no Claim bonuses

Time constraints

Usually, when policyholders suffer from medical conditions, the insurance company does not provide health insurance benefits right from the day when they buy health insurance policy. There is a pre-defined Waiting Period for specified pre-exiting diseases in the policy that needs to be served by the policyholders to get them covered under the policy. Only then will the insurance company bear the medical expenses for their already existing medical conditions. In case the policyholders switch their health policy to the new insurer, they won’t be required to serve the waiting again. Further more, no claim Bonus also gets carried forward with portability of health policy. Ever since portability was launched, policyholders are able to receive health insurance benefits from the new company from the very first day they buy health insurance.