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Health Insurance Portability
In the past, moving your health insurance policy from one insurer to another resulted in the loss of accumulated benefits like waiting period for pre-existing diseases.
In 2011 Insurance Regulatory Development Authority of India (IRDAI) introduced the concept of health insurance. Health Insurance Portability refers to the ability of an individual to switch from one health insurance plan to another without losing the benefits they have accrued.
It allows policyholders flexibility in choosing a different insurance provider while retaining their accumulated benefits of health insurance, such as waiting periods, no-claim bonuses, and pre-existing condition coverage.
For example, consider Isha, who has been covered under Health Insurance Plan A for several years. She recently discovered a Plan B that offers similar coverage at a more affordable premium.
With Health Insurance Portability, Isha can switch without forfeiting the waiting periods she has already served under Plan A. These advantages seamlessly transfer to her new plan if she has accumulated a no-claim bonus or enjoys coverage for pre-existing conditions.
This flexibility empowers her to adapt her insurance coverage to better suit her changing needs without compromising on the benefits she has earned over time.
Process of porting a Health Insurance Policy
A policyholder can apply for porting a health insurance policy only at the time of renewal
There is a defined process by the IRDAI on Health Insurance portability which is to be followed by all insurance companies…A step by step process is as follows:
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Step 1 |
Collate all documents required for the portability process and fill the application form in detail providing all relevant information |
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Step 2 |
Once you submit the form along with necessary documents, the new insurance company will seek the necessary details of medical history and claim history of the concerned policyholder from the existing old insurance company. This will be done through the web portal of the IRDAI |
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Step 3 |
On receiving such request from the new insurance company, the existing insurance company will submit the required data to IRDAI through the portal within 7 days. |
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Step 4 |
On receipt of all the data through the portal from the existing insurance company, the new company will underwrite the proposal, evaluating and approving/rejecting the application. Maximum time allowed for this process is 15 days. |
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Step 5 |
If approved, the applicant then pays the requisite premium and the new insurance company issues the policy with the accepted terms |
Documents required for Porting a Health Insurance Policy
- Policy certificates of previous years
- Latest notice of renewal mentioning coverage continuity and other details
- The policyholder’s self-declaration in cases of no-claim
- Investigation report, discharge summary and other equivalent documents in cases of claims
- Filled in proposal form and portability form
CONCLUSION
Health insurance portability is a convenient process through which you can switch from your existing insurer to a new insurer due to various reasons.
But If you are covered under a high-risk category, regardless of your policy duration and regular premium payments, the new insurer has all the authority to charge a higher premium as part of their underwriting rules. Also, if you are eligible for a no-claim bonus from your current insurer, the insurer may not consider paying you for that. Also, it is important to note that the new insurance company can deny your portability request on grounds of late application, incomplete documentation, and so on. In addition, the new insurer will have its own terms and conditions which may exclude expected benefits. So don’t forget to do detailed research before you switch.
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Frequently Asked Questions
Can the new insurer deny porting of Health Insurance policy?
Yes, the new insurer may deny porting if there are differences in the provided information or if you fail to meet the new insurer’s underwriting criteria. Pre-existing health conditions, non-disclosur
What is a portability form?
A portability form is a document you must fill when you decide to switch from one insurer to another. It comprises details about your current policy, and coverage benefits, giving your new insurer a s
Can an employee migrate from the employee Group Health Insurance policy to a retail policy?
From Group Health Insurance policy to a retail health policy, Portability can be applied with the same insurer only. During subsequent years it can be ported to other Insurers.
Will I get Cumulative Bonus under portability?
The cumulative bonus will the clubbed with the Sum insured and premium will have to be paid for the sum insured plus cumulative bonus, for which amount portability rights will be given. To give an e
Can I transfer the waiting period benefits when porting my health insurance policy?
Yes, you can transfer the waiting period benefits that you have already served with your current insurer to the new policy with the new insurer under health insurance portability. This prevents you fr