Categorized | Health Insurance

Points to Know Before Going for Health Portability

Changing your Health Insurance from one insurance provider to another insurance provider is referred as health insurance portability. When changing the health insurance Policy from one insurance company to another, one does not lose the accumulated benefits. Earlier, Health Insurance Portability used to result in loss of benefits such as Waiting Period of covering “Pre-existing diseases.” But, with IRDA coming in to picture, the right to port the policy to any insurance provider is protected. IRDA has laid down that the new Insurer “shall allow for credit gained by the Insured for Pre-existing condition(s) in terms of waiting period”. This fact is not only applicable when one moves from one insurer to another insurer but is also applicable in the case when one moves from one plan to another plan with the same insurer.
 
Following are some of the important facts concerning health insurance portability.

A health policy can be ported from and to any general insurance company or specialized health insurance company.

Any individual/family policies can be ported.

The new insurance company will provide the credit related to waiting period gained for pre-existing conditions with the old insurance company.

The new insurer will have to insure the customer at least up to the sum insured which was in the old policy.

The porting should be completed as per the timelines prescribed by the IRDA .

Policy can be ported only at the juncture of renewal which means that the new insurance company will get the new insurance period.

Except the waiting period credit, all the new policy terms will be decided by the new insurance company.

Before 45 days of policy renewals, you will have to:

1.Tell your old insurance company that you want to shift your insurance policy to another insurance company.

2.Tell your old insurance company about the insurance company you want to port your insurance policy with.

3.Insure that you renew your policy without a break (You will get 30 days waiting period in case the porting is underway.).

Only health insurance Indemnity policies issued by non life/general insurance companies can be ported.

Only those health policies can be ported which are like to like for example policy with basic Reimbursement will be ported to policy with basic reimbursement while the policy with top up will be ported to policy with top up.

There may be difference in the Premium and policy benefits of new policy to that of old health plan. Premium and policy benefits will depends upon the product plan ported.

Porting does not involve any extra charge. In order to port, you are only required to pay the applicable premium.

The new insurer has the right to decline the portability if it finds that the Proposal is not as per its Underwriting policy.

The new insurer has the right to seek more information from the customer within the seven days of portability request submission.

Within 15 days, the new insurer will inform the customer about its decision on portability request.

There will not be any benefit of no Claim Bonus resulting in an increase in sum insured as the increase in sum insured (with bonus) will be treated as the base sum insured in the new policy with premium getting charged accordingly.

The option of upgrading and switching to a new health plan with the same insurer can also be availed. Customer can also port group health policies to individual cover.

Customer can also contact the new insurer’s agent, corporate agent or brokers or can visit the new insurer’s branch.

In case there happens a delay in sharing information by the current insurer, it is up to new insurer whether it accepts the proposal or not. In such a scenario, there will be offered extended policy Term by the current insurer with it accepting the pro-rata premium of one-two months for the same. Also, policy must be free from any breaks.