Health Insurance Portability: Medical inflation is on a rise, and lifestyle ailments are increasing too. During such times, having a health insurance policy becomes a necessity. When buying health insurance, it is essential to go through the complete policy details as even missing out or overlooking a single feature can lead to an increase in out-of-pocket expenses. However, to ensure that people don’t end up being disappointed by their insurer, IRDA launched portability in 2011 making it possible for customers to switch their insurance companies. Customers who are not satisfied with the service or coverage offered by their insurer can now port the policy without losing out on the existing policy benefits. Read on to know all about health insurance portability and how it can be done.
What is health insurance porting?
Health insurance porting refers to switching from one insurer to another without losing out on the existing policy benefits like no claim bonus benefits, waiting periods, etc. One can port the policy at the time of renewal for a number of reasons such as better benefits, services offered by the new insurer, low premium, comprehensive coverage, etc. The sum insured opted for with the new insurer should be similar or equal to the sum of the sum insured and bonus earned to that of the existing policy or more.
Health insurance portability rules set by IRDA
IRDA has given the below rights to the consumers which they need to be aware of at the time of porting health insurance
- You can port any individual or family health insurance
- You will get continuity benefits on specific illness waiting periods and pre-existing illnesses subject to u/w approval.
- You can port your policy from any general and standalone health insurance company.
- With the new insurer, you need to get coverage up to the sum of the sum insured and the bonus earned mentioned in the existing policy in case you opt for higher SI.
- The proposal for portability might be rejected due to the u/w decision in case of an adverse medical condition.
- The policyholder has to inform the old insurance company in writing about the policy porting at least 45 days before the expiry. The existing insurance company will then have to acknowledge your request within 3 days.
- Insurance companies cannot charge any porting fees.
- There might be a change in the premium based on different factors.
Steps to port health insurance
The first step towards health insurance portability is to fill out the IRDA portability form to initiate the process. This can be done only if the policy is due for renewal. Approach the insurance company with which you need to port the policy. The new insurer will send you the different types of health plans they offer and also request you for a couple of documents.
Once you fill out the forms and submit the necessary documents to the new insurer, they will reach out to your previous insurer for obtaining your medical records. They might also ask you about your previous claims history and documents of treatment if applicable.
You will then have to submit an insurance portability form, proposal form and medical reports(if applicable) as requested by the new insurance company. The new insurance company has to accept the proposal within 15 days from the date of submission. In case if the proposal is accepted, you will have to pay the premium for the new policy.
Documents required for porting health insurance
The new insurer will ask you for the below documents at the time of porting health cover
- Identity proof
- Address proof
- Insurance policies of all continuity years (if applicable).
- IRDA portability form
- Claim history (if applicable)
- Documents related to medical history (if applicable)
- Declaration stating no claims were made in previous policy year
Health insurance portability is thus one of the best ways to ensure your and your family’s health with the best products of insurance companies.
Ankit Agrawal is the Chief Executive Officer & Co-Founder, InsuranceDekho.
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