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India’s insurance regulator, IRDAI, has given policyholders the option to dock a health insurance policy since 2011. This allows policyholders to switch from their existing insurer to another without losing benefits. Here’s everything you need to know about the portability of health insurance.
When to choose insurance portability
Unsatisfactory service: If you are not satisfied with your current insurer’s services or claims processing.
Better deals elsewhere: When another company offers better deals, wider coverage, or lower fees.
Changing healthcare needs: If your healthcare needs evolve and another insurer offers a plan that better suits your needs.
Transferring health insurance benefits
No handling charges: There are no additional transportation charges.
Benefit retention: Benefits such as waiting time for pre-existing conditions are transferred to the new system.
Continuity: The waiting time under the old system applies to the new one without resetting.
Points to consider before porting
Start early: Start portability at least 45 days before your new plan date, as per IRDAI guidelines.
Disclosure of medical history: Be honest about your medical history to avoid being denied claims with the other insurance company.
Compare plans: Make sure the new plan covers all important benefits.
Choose wisely: Choose a reliable insurer with a good coverage and customer service record.
Drawbacks of insurance portability
Higher premiums: Premiums may increase based on age, medical history, and risk assessment.
Limited policy options: The new insurer may not offer an equivalent policy to your existing one.
Approval needed: Portability is subject to the new insurer’s acceptance of your application.
Access to history: The new insurer will have access to your existing policy details and claim history.
Should you port or get a new policy?
Porting: If your current policy has completed waiting periods for pre-existing conditions, porting is preferable.
New plan: If your existing policy has limited coverage, a new policy may be better, though waiting periods will restart
Alternative options
Instead of porting or buying a new plan, you can enhance your existing policy by purchasing add-ons or riders for an additional premium. This allows you to improve coverage without switching insurers. Health insurance portability empowers policyholders to choose services that suit them best while retaining benefits. Make informed decisions by carefully comparing plans and understanding the implications of switching.
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