Medical inflation is on the rise, as are lifestyle ailments. Having health insurance becomes essential during such times. It is critical to read the entire policy details when purchasing health insurance because even missing or overlooking a single feature can result in an increase in out-of-pocket expenses. To ensure that customers are not dissatisfied with their insurer, IRDA implemented portability in 2011, which allows customers to switch insurance companies. Customers who are dissatisfied with the service or coverage provided by their insurer can now port their policy without losing their existing policy benefits.
What is health insurance porting?
Health insurance porting is the process of switching from one insurer to another while retaining existing policy benefits such as no-claim bonus benefits, waiting periods, and so on. A policy can be ported at renewal for a variety of reasons, such as improved benefits, services provided by the new insurer, a lower premium, comprehensive coverage, and so on. The sum insured chosen with the new insurer should be similar to or greater than the sum of the sum insured and bonus earned under the existing policy.
Health insurance portability rules set by IRDA
IRDA has given following rights to the consumers which they need to be aware of at the time of porting health insurance
· You can port any individual or family health insurance
· You will get continuity benefits on specific illness waiting periods and pre-existing illnesses subject to u/w approval.
· You can port your policy from any general and standalone health insurance company.
· With the new insurer, you need to get coverage up to the sum of the sum insured and the bonus earned mentioned in the existing policy in case you opt for higher SI.
· The proposal for portability might be rejected due to the u/w decision in case of an adverse medical condition.
· The policyholder has to inform the old insurance company in writing about the policy porting at least 45 days before the expiry. The existing insurance company will then have to acknowledge your request within 3 days.
· Insurance companies cannot charge any porting fees.
· There might be a change in the premium based on different factors.
Steps to port health insurance
The first step in achieving health insurance portability is to complete the IRDA portability form. This is only possible if the policy is up for renewal.
Contact the insurance company to which you need to transfer the policy. The new insurer will send you information about the various types of health plans they offer, as well as a few documents.
Once you have completed the forms and submitted the required documents to the new insurer, they will contact your previous insurer to obtain your medical records. They may also inquire about your previous claim history and, if applicable, treatment documentation.
The new insurance company will then require you to submit an insurance portability form, proposal form, and medical reports (if applicable). The proposal must be accepted by the new insurance company within 15 days of its submission.
If the proposal is accepted, you will be required to pay the premium for the new policy.
Documents required for porting health insurance
The new insurer will ask you for the below:
documents at the time of porting health cover
• Identity proof
• Address proof
• Insurance policies of all continuity years (if applicable).
• IRDA portability form
• Claim history (if applicable)
• Documents related to medical history (if applicable)
• Declaration stating no claims were made in previous policy year
