5 min read
There are many aspects of health insurance which people are not aware of. Health Insurance Portability is one such aspect that many people might not be familiar with. Health Insurance Portability is the facility that allows an insurance holder to transfer the current health policies to a new insurance company without losing the benefits accrued during the period of successive renewals. Thus, it allows an insurance holder to easily migrate his/her policy from one company to another at the time of renewal of policy.
Let’s evaluate the various features and benefits of Health Insurance Portability, starting with its meaning.
Portability in health insurance is the right given to a policy owner to shift or switch the existing policy to another insurance provider without losing the benefits accumulated in the current policy. The various benefits that are accrued in a policy, such as No Claim Bonus (NCB), free medical check-ups, credit of waiting period etc., can be transferred from the existing policy to the new policy provider with the help of Portability in medical insurance.
Thus, Health Insurance Portability allows policy owners to migrate his/her policy to a better company if the person is not happy with the existing provider. However, to enjoy Health Insurance Portability, it is important to renew your policy every year without a break. If you have missed renewing your medical insurance in the past, you cannot enjoy the portability feature. Also, to port to another insurance company, you have to apply 45 days prior to the renewal date of your current policy.
There are many rules entrusted by IRDAI regarding the portability in insurance. These rules are expected to be followed by both policyholders and the insurance providers.
Below are the different rules laid down by IRDAI:
Category – Type of policies allowed to port under health insurance portability.
Rule – Only the same type of health policies are permitted to port in case of both family and individual policies.
Category – Company type allowed to port.
Rule – Can port from one general or specialized company to other general or specialized company.
Category – Time required to port a policy.
Rule – Portability is allowed just before the renewal time of the current policy and not during any other period.
Category – Renewal of existing policy
Rule – For using the benefit of portability, the insured person must renew the policy continuously without any break. If you have not renewed the policy in the past, you cannot claim the feature.
Category – Intimidation about Portability
Rule – Insured person must notify their insurance provider in writing with a 45 days’ notice period prior to the renewal date of your policy.
Category – Acknowledgment
Rule – Your insurance company is expected to accept and acknowledge the application within 3 working days
Category – Charges
Rule – No porting charge is levied on the insured
Category – Premiums
Rule – Premium might change even for similar policies. Elderly people might have to pay more after porting to new company.
Category – Grace period
Rule – 30-days grace period for renewal is allowed to the insured person in case they are willing to port and waiting for the new company’s approval.
Category – Sum Insured
Rule – It is the discretion of the policy owner if they want to increase the amount insured. But sum insured should be equal to the original amount insured in the previous policy.
Category – Waiting period for existing diseases
Rule – If the new policy has more waiting period as compared to the earlier policy, then the insured person has to complete the additional period of waiting. So, if you have served 3 years of waiting period in the old policy and the new policy has 4 years of waiting period, then you have to serve one year of the waiting period before you could enjoy the benefits of the new policy.
From the old insurance company:
From the new insurance company:
Reasons for rejection of Health Insurance Portability
At times the portability application might get rejected. Here are the reasons for the same:
Health Insurance Portability is a good way to transfer the current health policies to a new insurance company without losing the accrued benefits. However, it is important to cautiously tread and compare different portability features of different companies before porting to a new health insurance provider. If you are planning to port to another medical insurance provider, start looking for the same at least 2-3 months before the renewal date. Overall, the Health Insurance Portability is an excellent opportunity for insurance owners to claim benefits and to switch to a new provider.
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