The intensely increasing healthcare costs in modern times have made it necessary for people to have health insurance for themselves and their families. The competitive insurance sector is filled with several insurance giants that are always looking for ways to attract more potential customers. However, once they persuade the customer to buy their policy, they lack in providing appropriate services.
The Insurance Regulatory Development Authority of India (IRDAI) in 2011 introduced the concept of health insurance portability
. Under it, the policyholders can port their health insurance policy to different insurance organizations without losing any benefits if they are unsatisfied with their plans.
Here in this article, we will go through different health insurance portability rules you need to know about and when should you port your policy.
Health Policy Portability Rules You Must Know About
Below-given are some of the crucial health insurance portability rules you should know about before porting your health policy:
1. Policy Type
IRDAI allows you to port the policy only to a similar type of policy which means you can not entirely change the plan and coverage of your policy.
2. Notifying the Insurer
You can only port to a new policy when your old policy needs a renewal. In addition, you must intimate your insurer 45 days prior to the expiry of the policy.
3. Type of Insurance Company
In India, there are two types of insurance companies: General Insurance Companies and Life Insurance Companies. You can port your policy only within a similar type of insurance company.
4. Grace Period
The policyholders get a 30-day grace period in health insurance
when the porting of the policy is under process. Also, the existing policy can be extended for a few days by paying the premium on a pro rata basis.
5. Porting Fees
As per health policy portability rules, there are no processing fees you need to pay for switching your policy from one insurer to another.
6. Sum Insured
The policyholder must ensure that the insured value must be similar to or above the original sum insured as per the previous insurance policy.
7. Renewal of Policy
It must be provided in a written application to your insurer that you wish to port your policy to a new insurer. The application must be given 45 days prior to the renewal date of your policy along with the name of the new insurer.
8. Premium and Bonuses
The mediclaim portability rules suggest that the health insurance bonuses, premium, and any other terms are at the discretion of the new insurer. Also, the premium may get dearer for people falling in high-risk categories.
9. Waiting Period
Typically, the waiting period does not get affected when porting to a new insurer. However, there may be a change in the waiting period if you have opted for new coverages under the policy you are porting to.
According to the health insurance portability rules, portability applications must be acknowledged by the insurer within three working days. Until the request application is accepted by the insurer, you should cancel your pre-existing insurance policy.
When to Port Your Health Insurance Policy?
If you are facing the following issues with your current policy or insurer, you can port your insurance policy to a new insurer.
· Unhappy with Your Insurer Services
A bad experience, poor service, or high annual premium may be one of the reasons for you to switch to a new insurer. However, it is advised to consider all aspects before opting for insurance portability.
· Getting a Superior Plan at the Same Cost
Many times, the coverages you are getting from your insurer are available at a lower price by some other insurer. Also, you might be getting more things covered under a health insurance
plan at the same cost by some other insurer. In such a case, you should opt for a new insurer.
· Want a Digital-Friendly Policy
Digital-friendly services are always the best. However, not all insurers provide this facility and it might be a valid reason to switch to a new insurer.
Frequently Asked Questions (FAQs)
- Are mediclaim portability rules the same for all insurers?
Ans. Yes, the rules are set by IRDAI and are the same for all insurers.
- Can I buy two insurance plans instead of porting my policy.
Ans. Yes, this is a valid option that you can opt for.
Health insurance portability can be a profitable choice considering you are meeting all health insurance portability rules. So take a thorough look at your current policy and decide wisely if you should go for health insurance portability or not.