A survey conducted by ET Wealth revealed that over 48% of the policy buyers are not happy with their current policy plans. You might be wondering if the dissatisfaction level of the consumers is this large, why don’t they get rid of their insurance plan. We also had the same question, and on researching, we figured out that most people do not want to again go through the process of buying a new policy plan.
The primary thought they have in their mind is that they will be losing on benefits they are getting with their current policy. However, not many people know, but the Insurance Regulatory and Development Authority of India (IRDAI) has introduced a concept in 2011 that states that a policyholder can port health insurance
to a new insurer without losing any benefits of the previous policy.
This post will showcase the advantages of porting an insurance policy instead of purchasing a new one.
Perks of Porting Your Health Insurance Policy
Porting of health insurance can be highly advantageous as compared to buying a new policy cover. Check out the following benefits:
● You Get to Customize Your New Policy
Portability allows you to modify the policy to suit your current health requirements. For example, you can change the nominee details, get additional cover, etc.
● New Sum Insured Value
When you port a health insurance policy, the new sum insured is calculated by adding the existing sum insured with accrued bonus. It is extremely beneficial in providing a higher sum insured
● Continuation of Previous Benefits
The best part of the health insurance policy portability is that you get to keep the existing benefits such as no claim bonus, accrued bonus, etc., when switching to a new insurer.
● Lowered Premium Rates
The rising competition between the insurance companies in India ensures that you can avail existing benefits of your policy at lower premiums.
● You Can Opt for Better Service Provider
One of the crucial reasons people want to port to a new insurer is the poor service quality of the existing insurance provider. Hence, good research can help you get a good and reliable insurer for your new health insurance
● Improved Claim Settlement
Slow claim settlement processes can be extremely annoying, especially when you are in need of money. So make sure to opt for an insurer who has a good claim settlement record.
● Opt for More Transparent System
Hidden clauses and rules in the insurance policy are major reasons for people wanting to leave the insurance company. With health insurance policy portability, you can switch to an insurer who has a more reliable and transparent insurance process.
Critical Things to Check While Porting a Policy
There are certain factors that you must keep in mind while undergoing the process of porting of health insurance.
● Age Limit for Policy Renewal
Ensure that your new insurer does not have any age restrictions and limits offers lifetime renewal validity.
● Increase in Premium Amount
Though, portability usually results in lowering of premium rates. Sometimes, if you have made multiple claims with the previous insurer or have pre-existing diseases, there may be a rise in your policy premium.
● Cashless or Reimbursement Policy
A significant factor that must be kept in mind while porting your policy is that if your new policy’s mode of payment or collection is cashless or not. A cashless policy is much preferred over the reimbursement policy due to on-time benefit.
● List of Hospitals Attached to the Insurer
Check out the hospital which you prefer taking treatment from is registered with the insurance company or not.
● Medical History of the Policyholder
Porting of health insurance may get rejected in case you have a track of multiple health issues and pre-existing diseases.
● Increase in Sum Insured
There might be a waiting period that needs to be served if you wish to increase the sum insured of your new policy.
● Technical Incorrections
Technical incorrections may result in rejection of the health insurance policy portability. So make sure to fill and double-check every form you fill out for the new insurer.
Frequently Asked Questions (FAQs)
- Can I switch to any health insurance plans of my choice?
Yes, you can, provided the insurance plan is of similar type.
- Is it possible to port to a new insurer in the middle of the policy?
Unfortunately, no. Portability is only allowed at the time of renewal of your policy.
Porting of health insurance to a new insurer is a much better choice than buying a new policy. It saves you from losing any benefits on the existing policy and additionally provides multiple other advantages.