Today’s Wallet-Wise query decodes what policyholders should know before moving an existing health policy to a new insurer.
Can a policyholder switch their parents’ health insurer after they develop a disease? While health insurance policies can generally be ported at renewal, a new medical condition can affect the new insurer’s underwriting decision. So, what happens to existing waiting-period benefits, and what should policyholders check before making the switch?
Sarita Joshi, Head of Life & Health Insurance, Probus advice: Yes, a policyholder can apply to port their parents’ health insurance policy at renewal even if a new medical condition has been diagnosed. But it’s important to know that porting the policy does not mean the new insurer has to accept it. They will look at the parent’s current health condition and medical history before deciding whether they can offer the policy and on what terms. So, portability is a right to apply for a switch, not a guarantee of acceptance.
When a policy is ported, the waiting-period credit already earned under the existing policy is carried forward, subject to the applicable portability rules. For example, if a parent has already completed the applicable waiting period for a pre-existing condition, that credit does not ordinarily start from zero simply because the policy is ported. However, if the policyholder increases the sum insured while switching, the applicable waiting period can apply to the additional amount of coverage.
Before porting an ageing or medically vulnerable parent, policyholders should carefully compare co-payment requirements, room-rent limits and other sub-limits, exclusions, coverage for existing conditions, and the new insurer’s cashless hospital network. They should also understand how any increase in sum insured will be treated before making the switch.
