Health insurance is a backbone that helps to navigate the financial expenses that may arise during a medical emergency. Several insurance providers have made some important changes to offer better plans and offers. But several policyholders often ask one question: “Is health insurance portable?”
Yes, if you are not satisfied with your insurer, you can switch insurers, and this is called health insurance portability. Keep reading the guide below to understand more about health insurance portability and how to do it.
What is Health Insurance Portability?
Health insurance portability refers to the ability to change insurance providers or switch policies from the same insurer without affecting continuity. This concept, introduced by the Insurance Regulatory and Development Authority of India (IRDAI), allows policyholders to transfer waiting periods and other benefits when switching plans.
For example, if you have a health insurance policy with a waiting period of four years for a specific condition, and you have completed two years and decide to switch to a different insurer, like Bajaj General Insurance. In this case, the insurer counts those two years, so you only wait the remaining years instead of starting over.
How to Port a Health Insurance Policy?
You can follow the following steps for easy health insurance portability online by visiting your new insurer’s website:
Step 1: Inform your insurer
According to the IRDAI rules, you must start the portability process by informing your existing insurer about your plan to switch at least 45 days before your plan renewal.
Step 2: Choose your new insurer
Explore various insurance plans from different companies by comparing their sum assured premiums, claim settlement ratios, network hospitals, and additional health benefits. For better comparison, you can also use the IRDAI website to find detailed information and make an informed decision about your health insurance options.
Step 3: Fill the portability form
Fill out the form by providing all the correct information, such as your personal details and your current and new policy.
Step 4: Submit the required documents
Share the necessary documents, such as a copy of your existing policy, KYC documents, and bank account details to make the premium payment.
Step 5: Wait for the transfer process
Your existing insurance provider will submit your information to the IRDAI portal. The prospective insurer will then examine these details and determine whether to grant approval for your application. This process ensures that all necessary information is reviewed before deciding on your request.
Step 6: Appear for medical tests (if needed)
Your new provider will review your application. Depending on your age and medical history, you may need to have a medical exam.
Step 7: Policy issue
After approval, your new policy will start with the same benefits as your old one. You just need to pay the new premium, and you are all set to continue your policy with your new insurer.
What Are the Benefits Of Porting Health Insurance?
You can port your health insurance policy and get benefits such as a wider network of hospitals. Below are the benefits that you can get from health insurance portability:
- Transfer of waiting periods
Health insurance portability lets you carry forward completed waiting periods for pre-existing diseases to your new policy, so you do not have to restart the waiting period.
- Retention of No Claim Bonus (NCB)
The portability of health insurance allows policyholders to keep their accumulated No Claim Bonus (NCB), which either boosts the total coverage amount or lowers the renewal premium when switching to a new insurer.
- Provides Better Coverage
Portability helps policyholders switch to health insurance plans that provide better coverage, a higher sum insured, or more affordable premium rates.
Final Words
Health insurance portability gives policyholders the ability to switch plans without losing benefits, leading to better coverage and service. However, it involves risks such as medical underwriting, higher premiums, and modified plan features. Knowing all these pros and cons of portability of health insurance helps you make an informed decision.