If you feel let down by your current health insurance provider because of increasing premiums, restricted coverage, unsatisfactory customer service, or a hassle-filled claims process, then remember, you have a way out.
You can switch insurers through health insurance portability if your current health insurance company no longer meets your needs.
Keep reading to learn how health insurance portability works, when you should consider it, its key benefits, how to port from a group health insurance policy to an individual plan, and the common mistakes to avoid.
How does health insurance portability benefit policyholders?
Health insurance portability allows you to switch insurers without losing continuous benefits, including any waiting periods for pre-existing conditions, which are also carried over to the new policy.
“Portability is a regulatory mechanism that protects continuity benefits when policyholders shift to a different insurer,” says Sarita Joshi, Head of Health and Life Insurance, Probus.
Health insurance portability helps the policyholder move to a plan with better features, wider coverage, or more competitive premiums.
Health insurance portability IRDAI rules: When can you port your policy?
IRDAI norms allow portability only at the time of policy renewal to help ensure there is no break in coverage while switching insurers.
“As per Insurance Regulatory and Development Authority of India (IRDAI) guidelines, policyholders can port their policy at the time of renewal without losing the benefits accumulated under the previous policy,“ says Gurmeet Singh, Vice President & Head – Health and PA Underwriting, IFFCO TOKIO GIC.
For instance, in the case of individual policies, if the policyholder has been continuously covered without any break for four years or more, the insurer may allow migration without fresh underwriting to the extent of the existing sum insured and accrued benefits, he adds.
How does health insurance portability benefit you?
One of the biggest advantages of portability is continuity of benefits. Typically, the following benefits are retained:
Waiting period credits
Continuity benefits for pre-existing diseases
Accrued No Claim Bonus (NCB)
“Typically, the key benefits retained during portability include credit for waiting periods already completed, continuity benefits for pre-existing diseases, and no loss of accumulated benefits like No Claim Bonus (subject to policy terms), and so on,” says Singh.
Insurers do not carry forward NCB; instead, they provide the continuity benefit on NCB. This means the new insurer underwrites the proposal and admits it or revises terms depending on the proposer’s age, health condition, and changes in the claims history, explains Joshi.
