Health Insurance Portability enables the insured to switch to another health insurance plan without losing the accumulated credits and benefits of the previous policy. The facility can be used to opt for an alternative policy from the same insurer or a total new provider. Health insurance portability does not make the insured lose any claim bonus or other cumulative benefits.
In 2011, the IRDA created a provision for policyholders to transfer health insurance policies without losing cumulative benefits. The IRDA laid out the rights and conditions for portability in its guidelines. Explore Plum Insurance for Group Health Insurance Plans and Medical Cover for Employees
IRDA guidelines for Health Insurance Policies:
Policy: While guidelines provide for, ability to shift to a new insurer, it is restricted to do a complete overhaul of the policy type, sum insured, and cover.
New Insurer: The new insurance company the insured wishes to switch to should be the same type as the one from which the shift is made. As a result, life insurance to Life insurance, and general insurance to general insurance.
Existing Insurer: When the insured updates the existing insurer about plans to switch, as per IRDA instructions, the insurance company has to acknowledge within three days.
Policy gaps: The health insurance portability does not work when your health insurance has already lapsed. Ideally, portability should be applied at least 45 days before the due renewal of the policy. The renewal portability process should start when the policy is due to avoid rejection.
The flow of Information: Insured should update the existing policy provider about the switch. The flow of information should be done in writing and at least 45 days before due renewal.
💰Porting Fees: No porting fee can be charged by either of the insurance companies, the existing one or the one where you are porting your policy.
Premiums: There can be differences in the premium charged by the insurance companies. The same depends upon the facilities provided by the insurance company. Insured should get detailed information about any changes in premium before porting.
Grace Period: Additional grace period eligibility is there to the insured till the existing policy remains active. It entails that the premium will be adjusted according to the active days of the current policy.
Cover: While porting the existing policy to the new provider, the insured can also apply for increased cover and sum insured.
😱Waiting Period: Health insurance has a clause of a waiting period to provide cover for an existing condition, maternity, or a few specified illnesses. While the IRDA protects the insured by instructing maintenance of the waiting period, the same does not get applicable when a change in policy type or features opts in health insurance portability.
The rationale of Switching your Health Insurance:
Quality: We live in an era where customer satisfaction is of utmost importance. Insurance portability is suitable if the existing insurance provider lacks the quality of service provided and cannot deliver on the promises made while opting for the policy.
Cover: Policies are designed specifically; each has its own set of parameters and algorithms to decide optimal cover and facilities. The insured should opt for it when the existing insurance policy does not provide the expected cover, and a better cover is available under the same premium terms.
Better Offer: Besides the cover, some various features and factors comprise your health insurance plan. Each policy provider tries to create a better deal for the insured in today’s competitive market. If portability enables the insured to land a deal, it is ideal to opt.
Lack of clarity: Major dissatisfaction occurs in health insurance plans when the insured files for claims. If the claim process makes the insured think that his existing policy lacks transparency, and it is not what he opted for while choosing the policy, portability makes sense.
Limitations of Portability:
- Insurance portability is only viable when renewal is becoming due.
- Portability options are only available to the only similar type of health policy, which creates a limitation in available options.
- Change in premium can occur when selecting additional features and benefits.
- Insurance portability while available from family floater/group health insurance to an individual policy, but opting for the same can reduce few benefits of the plans.
Looking at various aspects, sometimes existing policy conditions necessitate the porting of policy. While individual plans and porting look simple, it is a bit tricky for group health insurance to individual plans.
How to port your health insurance plans:
Step 1: Fill the IRDA Portability form.
Step 2: Update your existing policy provider.
Step 3: Details submission to a new insurance provider.
Approved, and voilà, you have made the switch.
Health insurance policy plays a cover against financial burden arising out of hospital/treatment expenses 🚑. If, as an insured, one is not satisfied with the existing plan for any reason. While searching can avail a fitting policy within the same type, health insurance portability should have opted. To protect the insured’s rights, the IRDA has ensured to pass on maximum benefits to the new plan as well. Portability is an efficient tool in the insured’s hands to provide quality service and optimal benefits.Best group health insurance plans & benefits for your employees and Tailored for every budget. Get transparent pricing & a quick online purchase experience with Plum
When should I apply to have my health insurance policy ported?
You can apply for health insurance porting 60 days before your policy is due to renew.
Is there a loss to the insured when transferring a health insurance plan?
According to the IRDA guidelines, the insured does not lose any aspect of the existing plans as long as he maintains the current policy without breaks. Even portability is provided at no cost to the insured.
Is age a consideration when deciding whether to port health insurance?
Age is an essential factor in health insurance; the older you are, your premium is higher. As you get older, your current health insurance may be more cost-effective. Because of the age factor, a new insurance provider will assume insurance risk at a higher premium.
What happens if a porting request is denied?
Rejection of a portability request is usually the result of an error or omission on the portability form. The same can be clarified with the insurance company.
Is there a time limit on when I can choose to port my health insurance?
Health insurance portability is only possible when the policy is about to expire. Ideally, the porting process should begin 45 days before the existing policy’s renewal date.