Everything You Need To Know Before Porting Your Health Insurance Policy

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I won’t lie but I got my health insurance policy fairly late. And had to learn a lot before getting one – how to buy, where to buy, and how to transfer health policy were some things that I had to learn. In 2011, the IRDAI enacted health insurance portability. Through portability, a policyholder can carry over time-bound exclusions and the credit for pre-existing conditions when switching from one insurance company to another or from one health insurance plan to another.

A family or individual policy may be transferred from a general insurance provider to a supplier of specialized health insurance under the IRDAI’s health insurance portability scheme. A health insurance policy from the new insurer must at least cover the amount insured under the prior policy.

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A policyholder is frequently forced to consider switching to another insurance company due to the insurer’s subpar policy features and services. Better features, discontent with the present insurer, premium costs, and other factors are a few of the reasons why a policyholder typically chooses to move their coverage. 

At the time of renewal, a policyholder may think about changing insurers. Here are some crucial considerations for you to bear in mind if you decide to do this.

Porting Your Health Insurance Policy – Things To Remember

What can you port?

The IRDA guidelines state that credits on time-bound exclusions and no-claim bonuses are transferable. If the new insurer accepts your request, he is required to provide you with the credit you earned with the previous insurer for the pre-existing condition waiting period. The features of your current coverage are not transferable, so keep that in mind.

With health insurance portability, you can only port up to the amount of the prior insurer’s sum covered (including no-claim incentive). He must at least insure you for the amount covered by the prior policy. As an example, if you now have medical insurance worth 10 lakh rupees but want to increase it to 15 lakh rupees when you port to a new insurer, the porting advantages will only be applicable for 10 lakh plus any bonuses.

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Process of Health Insurance Policy Porting

Health insurance policy portability in India allows policyholders to switch from their existing health insurance policy to a new one, with another insurer, without losing the benefits of their existing policy.

To apply for health insurance policy portability in India, you should follow these steps:

1. Initiate the process: You should initiate the process of health insurance portability at least 45 days before the renewal date of your existing policy. You can do this by submitting a portability application to the new insurance company.
2. Provide necessary details: The new insurer will require you to provide some basic details such as name, policy number, and the sum assured of your existing policy.
3. Submit documents: You will need to submit the following documents along with the portability application: a copy of your existing policy, a copy of your renewal notice, and a declaration of good health.
4. Wait for approval: The new insurance company will verify your application and documents and decide whether to approve or reject your application. If approved, they will issue a new policy document.
5. Inform the old insurer: Once you receive the new policy document, inform your old insurance company that you wish to port your policy. The old insurer will then provide the new insurer with all the required details.

It is important to note that not all health insurance policies can be ported, and there are certain conditions and restrictions that may apply. You should carefully read the terms and conditions of your existing policy and the new policy before making any decision.

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Pros of Porting Health Insurance Plan

The following are some of the pros of porting a health insurance plan in India:

1. Continuity of coverage: One of the main advantages of porting a health insurance plan is the continuity of coverage. When you port your policy, you can transfer your accumulated benefits, such as the waiting period, no-claim bonus, and other benefits, to the new policy.
2. Improved features and benefits: Porting allows you to choose a better health insurance plan with more comprehensive coverage, better features, and higher limits. You can switch to a policy that better suits your current medical needs.
3. Cost savings: Porting your health insurance policy allows you to take advantage of lower premiums offered by other insurance companies. You can compare the premiums and benefits of different policies and choose the one that offers the best value for money.
4. Better customer service: Porting your policy allows you to switch to an insurance company that offers better customer service. This can be important when you need to file a claim or seek assistance in a medical emergency.
5. Convenience: Porting your health insurance policy is a simple process. If you wish to port your health insurance online, the process is simpler than doing it offline. You do not need to go through the hassle of buying a new policy, submitting medical reports, or undergoing a medical check-up.

Cons of Porting Health Insurance Plan

While there are several advantages to porting a health insurance plan in India, there are also some potential drawbacks to consider. These include:

1. Loss of accumulated benefits: Although porting allows you to transfer your accumulated benefits to the new policy, there may be certain benefits that you are not eligible for under the new policy. For example, if your old policy covers pre-existing conditions after a waiting period, your new policy may not provide the same coverage.
2. Limited choice: Porting your policy limits your choice of insurance providers to those that offer portability. This means you may miss out on other insurance providers who may have more comprehensive coverage and better features.
3. Waiting period: In some cases, the new insurance provider may impose a waiting period for certain benefits that were not covered under your old policy. This means you may have to wait for a certain period before you can avail of those benefits.
4. Underwriting: When you port your policy, the new insurance provider may require you to undergo a medical check-up or submit medical reports. Depending on your health status, the new insurance provider may exclude certain pre-existing conditions or impose higher premiums.
5. Incompatibility: In some cases, the new insurance policy may not be compatible with the hospitals and healthcare providers in your area. This means you may have to travel further or pay more out-of-pocket expenses for healthcare services.

While porting your health insurance policy in India can have several benefits, there are also potential drawbacks to consider. Before you decide to port your policy, it’s important to carefully consider these factors and compare the terms and benefits of different policies.

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Although porting is a practical option, customers should only use it in situations where portability is actually required. As underwriting guidelines, policy exclusions, and terms and conditions differ between health insurance providers, it is crucial to conduct a cautious analysis. The policyholder must also be aware of the new terms and conditions included with the newly migrated insurance policy.

I hope you found this blog post helpful and insightful. Let me know your thoughts in the comments below, tweet to me at @Atulmaharaj, DM on Instagram, or Get In Touch.