Health Insurance Portability – How You Can Benefit from It?

Policyholders are given a string of benefits on purchase of a new health insurance policy. Other than lifelong renewability, tax benefits, free look period, grace period, and many others, the feature that gains strong favor is health insurance portability. 

Health Insurance Portability – The Concept 

Health insurance portability is the facility of transferring an existing insurance policy to a new insurer while keeping the benefits provided by the existing insurer intact. Introduced by the Insurance Regulatory and Development Authority of India (IRDAI) in the year 2011, health insurance portability is one of the best options for policyholders that are dissatisfied with their current policy and feel stuck with their insurer. 

So, if you feel that your existing policy is not as per your expectations, has cumbersome claim settlement or co-payment issues, demands a high premium, provides slow reimbursement or has limitations that you can’t cope with, do not hesitate in opting for health insurance portability. After all, it is a prime feature made for your benefit only. 

How you can reap benefits by choosing health insurance portability?

First of all, note that all the policies issued by health insurance companies and general insurance companies come with the facility of health insurance portability. Additionally, health insurance portability is allowed for individual as well as family policies.

Here is a list of all the benefits that you get when you choose to go with portability of your existing health insurance –

• Features of your existing health insurance policy remains intact even after the portability process.
• Becoming entitled to sum assured as well as cumulative bonus as a part of health insurance portability.
• A waiver on the 30 days of waiting period, under which a policyholder is not provided any cover. 
• Freedom from waiting period of pre-existing diseases as you have already spent the time required with the old insurer. 
• Features of existing health insurance policy at lower or competitive premiums.
• Better claim settlement facility than the current one. 
• Access to new, better, and upgraded health insurance products.
• Moving forward with health insurance plans and products as per your changing requirements and needs. 
• Better customer service and more customer centric products. 
• Change of job without having to worry about your group health insurance policy and benefits associated with it. 
• Freedom from paying an extra amount when opting for portability because all you need to pay is the premium.

Things to remember before opting for health insurance portability?

• Notice period of 45 days before renewal of existing policy
• Acceptance period of the new insurer
• Underwriting process
• Waiting period clause
• Continuity of the policy at the right time
• Medical history of the applicant
• Age of the applicant
• The amount of increase in sum assured
• Checking the premium and cover provided 
• Not providing incorrect or wrong information to avoid rejection

Things to watch out for while choosing health insurance portability?

• Applying for health insurance portability when the existing policy is due for renewal.
• When switching from group mediclaim, moving the policy to the same company and 1-year wait to switch it to some other company.
• Loading charges on premium for pre-existing disease policy 
• Whether or not maternity charges are continued when shifting group insurance policy to individual policy?
• Whether or not the new insurer provides cumulative bonus or no claim bonus on switching?
• Limits, sub-limits and other restrictions.
• Age limits or age cut-offs.
• Network hospitals provided by the new health insurance company.

P.S.

• Under health insurance portability feature, the customer can choose only similar kind of products. 
• Additional benefits can come with an addition in the cost of premium. 
• Policyholders transferring from group health insurance to individual policies might have to lose some benefits available in their current health insurance policy. 
• Porting a health insurance policy takes some time due to new policy issuance, post-verification of the information provided by the customer with their current insurer. Once the insurance company receives the application of health insurance portability, it offers the policyholder with a proposal form and portability form. Once the new insurer receives all the details, it has to take a decision about underwriting the insurance policy within 15 days.

Reasons for rejection of health insurance portability request?

• Inappropriate information
• Break in policy renewal
• Delayed submission of documents
• Inaccessible policy documents
• Deficient claim history (where multiple claims have been filed)
• Differences between key features including inclusions, exclusions, and others 

Also Read

Are Spouses Allowed to Split Health Insurance Premium to Claim Tax Benefit Under Section 80D?

Top 4 Maternity Insurance Plans and Their Benefit

Conclusion 

Health insurance portability is nothing less than a boon for people who are frustrated with their current health insurance policy or health insurance company. 

If you too are one among the same, make it a point to consider health insurance portability to put an end to all your worries. 

For more, feel free to call InsuranceDekho experts at 18001205698.