Help Series

HELP 111: PORTING YOUR HEALTH INSURANCE

The Insurance Regulatory & Development Authority (IRDA) announced the new portability menu that let customers switch their Health Insurance Policy to any general insurance company or specialized Health Insurance Company a while back. But even till date, there is quite a lot of confusion regarding the regulations of porting your insurance.

So, in this weeks help series we tell you the things to keep in mind to port your health insurance with ease and make the process a lot less frustrating.

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How To Port?

  1. You can port a policy only at the juncture of renewal. Which means, the next insurance period can be with a new insurance company
  2. 45 Days Notice Period – All those who want to port their insurance need to keep in mind that they need to apply for the porting a minimum of 45 days before their policy is due
  3. For which –
    • Write to your existing insurance company asking for a shift
    • Specify company to which you want to shift
    • Renew your policy without a break (a 30 day grace period is allowed in case porting is in process)
  4. Also get the proposal form and a portability form along with details of various products offered by the new insurance company. Choose the product which suits your requirement, fill up the proposal and portability forms and submit them to the new insurer. Once the insurance company receives both these forms, it will approach your existing insurer seeking details such as medical records and claim history
  5. There are no extra charges for porting your policy; and you’ll be applicable only to pay the premium as per the plan chosen by you

Conditions –

  1. Portability isn’t guaranteed, and the new insurer could decline the proposal if it is not suitable according to their underwriting policy
  2. The new insurer has to inform the customer of it’s decision on the request within 15 days
  3. Waiting Period Clause – The waiting period clause will be waived depending on the period of continuous coverage with the existing insurance company and will be applicable according to the rules of the previous insurance company
  4. The new insurer is applicable to insure you at least up to the sum insured under the old policy
  5. Maintain Records – Maintain proper documentation of such as previous policy certificates, renewal notices etc so it’s easier for the new company to evaluate your proposal

When should you shift via portability?

  1. Consider all aspects of your health policy such as no claim bonuses, sub-limits, ease-of-claims procedure, and compare them with other health policies. Only if you are sure that your insurer is not providing you with the best health policy, consider porting
  2. People who have never claimed hospitalisation expenses related to any surgery or ailment can switch, as porting will be immediate
  3. In case you have a medical history you can think of maintaining the existing policy. This category of people can take additional cover but it makes sense to retain the old health policy as one is sure of getting claims towards ones pre-existing illness from the old insurer, who is aware of ones health history and where one has already completed the mandatory waiting period. Additionally, the premium may not stay the same even for a similar coverage as insurers are free to levy premiums according to their underwriting norms. This means that people in the ‘high-risk’ category may have to pay a higher premium after switching.

In case you still might have any queries regarding porting your Health Insurance, feel free to ask our experts and they’ll be more than happy to help 🙂