Health insurance portability can be a blessing for people stuck with substandard insurance companies that charge them high premiums and deliver poor services. Porting your health insurance to a new insurer can be highly advantageous as you get to keep the existing benefits of the policy and switch to a new and better insurance plan and insurer for yourself.
The concept of health insurance portability
was first introduced in 2011 by the Insurance Regulatory and Development Authority of India (IRDAI). Under it, if any individual feels dissatisfied with their existing insurance policy due to claim-settlement issues, high premiums, slow reimbursement, or poor service, they are entitled to switch their policy to a new insurer without losing any benefits.
7 Prospective Benefits of Porting Your Health Insurance Policy
There are numerous benefits of porting health insurance policy if you are not satisfied with your existing insurance plan. Let us look at some of the major benefits:
1. No Loss in Previous Policy Benefits
The biggest advantage that you get by porting your health insurance plan is that you don’t lose any benefits from your existing insurance plan. All the benefits offered by the existing insurer in your policy will stay in force in the new policy plan that you opt for.
2. Better Sum Insured Value
When you port your health insurance policy to a new insurer, the accrued bonus of your previous policy is added to the new sum insured value. This increases the current value of your policy and offers better benefits. Moreover, the no claim bonus is also included in your new sum insured value.
3. Lowered Policy Premiums
The number of insurance companies has grown extensively in the recent few years. These companies are always offering several discounts and other benefits in order to increase their current customer base. Hence, when you switch to a new insurer, there are higher chances of getting existing benefits of the old policy at a much-lowered premium rate. It will be extremely helpful in bringing down the cost of insurance and save you more money.
4. Ability to Customize Policy
One of the most significant benefits of porting is that you can customize the new health insurance policy
as per your requirements. There might be some health issues that you want your policy to focus on, or you wish to change the nominees in your policy. Any customization in the policy can be done while switching from your old insurer to the new insurer.
5. Option to Avail a More Transparent System
Insurance companies are always blamed for their opaque and hidden clauses in the policies. Since you are porting to a new insurance company, you get to research and choose an organization that has more transparent practices and works with no hidden clauses or conditions.
6. Get Finer Claim Settlement Ratio
Make sure to check the health insurance claim settlement ratio
when picking a new insurer for your insurance plan. Most complaints people have from their existing insurer are of the sluggish claim settlement process. If you consider this factor before buying the policy, you may enjoy better services with your new insurer.
7. Get a Better Service Provider
If the reason for porting your insurance policy is because of the poor service of your insurer, then you must feel happy. With porting, you have the opportunity of picking an overall better insurer. Look for a company that is mostly rewarded for its high-quality services and then choose your option.
Possible Reasons for Rejection of Portability Request
Yes, you read it right! Though the benefits of porting health insurance policy are substantial, there are chances that your portability request may get rejected. Following are the reasons when this can happen:
- If there is a break in the policy renewal period.
- When you provide inaccurate or inappropriate information.
- If there is a delay in the submission of documents.
- If the documents that you submitted are inaccessible.
- If there is a deficient claim history.
Frequently Asked Questions (FAQs)
- Is there any processing fee for porting to a new health insurance plan?
No, you won’t be charged any processing fee for the portability process.
- How long does the porting process take?
Usually, the new insurer has to respond within 15 days of your application submission. Overall, the process may take around 30 days.
The benefits of porting health insurance policy are abundant. So if you feel stuck with your current insurer and are unsatisfied with their services, it is better to get your policy ported and enjoy the new insurance provider’s services.