Dissatisfied with your health insurance carrier due to poor service and a complicated claim settlement process? Don’t fret! You have the option of porting your health insurance coverage. The IRDA of India allows you to port health insurance coverage from your present insurance provider to a different insurance provider, but you must do it at least a week before your existing health insurance plans or services end.
In this blog, we will talk in detail about porting health policies. Keep reading to know more.
Health Insurance Portability: A Detailed Explanation
A health insurance policy porting is transferring your existing health insurance plan to another insurance carrier of your preference, just like you may move from one telecom service provider to another.
In 2011, India’s Insurance Regulatory and Development Authority implemented health insurance portability. A policyholder can use portability to carry forward the credit for pre-existing conditions and time-bound exclusions when transferring from one insurer to another or from one medical insurance policy to another. The policyholder is also eligible for continuity benefits earned during the previous health insurance period, including a No Claim Bonus and free medical check-up.
How to Apply for Health Insurance Policy Portability?
If you believe that porting of health insurance is a fantastic option for you and are asking how to transfer your health insurance policy, here are the steps to take:
- You may need to fill out the IRDA portability form to begin the procedure. A policyholder might seek portability when the insurance is up for renewal. You must contact the insurance provider where you want to move your current health insurance coverage. The new insurer will give you two documents: a proposal form and a portability form. They may also provide information on the company’s best health insurance plans.
- Once you have completed all the relevant documents and sent them to your new insurance provider, they will contact your prior insurer to get your medical records and other pertinent information. They may also request your claim history. When your previous insurance firm receives such a request, it must disclose this information with IRDAI.
- When the new insurer receives all the necessary information, they will determine whether or not to supply you with health insurance coverage. It is known as policy underwriting. An underwriter will analyse your data and examine your risk profile before deciding whether or not to provide you with health insurance. If your new insurance provider decides to insure you, they must underwrite your policy within 15 days. If you miss this deadline, you are assumed to be insured by the new insurance carrier.
Note: Once you receive the new policy document, carefully review it. If you find any of the terms dissatisfactory, you can cancel your policy, and the premium you paid shall be refunded. This is called the free look period, and it is valid for 15 days from the date of policy issuance.
Health Insurance Portability: Documents Required
To port your health insurance, you may require to provide the following documents:
- Identity proof
- Evidence of residential address
- IRDAI Portability form
- Health Insurance Policy
- Proposal form
- Documents related to health history
- Declaration of no claims, if requested
- Claim history, if applicable
Benefits of Health Insurance Portability
The following are the advantages of switching to a new health insurance company:
- Policy Customisation: To some extent, you may customise the policy. In this manner, you may modify the coverage to meet your current demands from a health insurance policy.
- NCB: If you have an accrued No Claim Bonus on your current policy, your new insurer will calculate it and include it in your premium. As a result, by maintaining a healthy lifestyle, you can continue to benefit from the No Claim Bonus.
- Premium: The present Indian health insurance industry is highly competitive. Insurance companies encourage customers to join them and purchase health insurance coverage. Moving your old coverage may cut your premium while increasing your benefits.
- Medical Insurance Benefits: Apart from the earned No Claim Bonus, your policy’s other advantages apply even after you switch. Porting allows you to preserve your current benefits while gaining new ones with a new insurance provider.
Factors to Consider When Porting Health Insurance
Purchasing insurance without taking into account your lifestyle, needs, and coverage might have a significant influence on the claim amount. As a result, it is essential to examine the following factors when transferring your health insurance coverage from one insurer to another:
- Benefits: Every medical insurance plan is designed to have beneficial characteristics for the policyholder. You should be aware that certain features or perks are specific to the insurance and cannot be transferred. For example, if your former policy provided 30-day pre-hospitalisation coverage and your new insurance carrier provided 15-day coverage, you cannot modify this provision. You must live with the new coverage.
- Limits and Sub-Limits: Every type of health insurance policy coverage has a claimable amount cap. For insurance, the daily room rent may be limited to ₹2,500. When transferring your medical insurance plan, you should review such limitations to ensure you are comfortable with the new insurance plan’s limits and sub-limits.
- Premium: The new insurance provider may offer a reduced premium for similar insurance coverage. However, you must ensure that the coverage for a reduced cost is adequate for your needs. Lower premiums for less coverage will result in more out-of-pocket payments in the event of a medical emergency. “Out-of-pocket expenses” refers to money paid directly to a hospital or medical institution without an insurance company’s participation.
The Bottom Line
Health insurance portability is a fantastic alternative for policyholders who feel they don’t have a good health policy or are dissatisfied with their existing insurance provider. Before going for health insurance portability, it is a good idea to read the terms and conditions of the medical insurance policy.