Medical Insurance Portability

Insurance Regulatory and Development Authority (IRDA), the apex regulator of the Insurance Industry released circular giving guidelines on introduction of portability of medical insurance in India. Like the name suggests, this allows switching medical insurance policies from one insurer to another, without losing out on coverage due to exclusion. So, if a customer has a policy and wants to switch to another insurer after one year, he/she will be allowed to do so while retaining the benefit of carrying forward the awaiting period served. This is another milestone in the general insurance industry in India. Medical insurance portability is now a reality. It gives us another opportunity to make our financial planning better by being with the insurer who we think is the best. It means medical insurance companies improving their service levels, as they try to retain clients and entice clients from other insurers.

When Should You Port Your Medical Insurance Policy?

Here are certain points to keep in mind when you decide to port your health insurance policy.

• Unsatisfactory Service -

If your health insurance provider doesn't deliver the promised quality of service, then it is time to port. Sometimes insurers might fail to deliver on quality assurances and there is no point on continuing with them in such cases.

• Add-on Cover -

Your current health insurance provider might not offer sufficient coverage against specific health issues. It might be the right time to move to a service provider that offers coverage against all your needs in such situations.

• Slow Claim Settlement -

If your provider has a history of slow claim settlements, then it is definitely time for you to look for better options.

• Unknown Clauses -

Hidden clauses might become a major obstacle during emergencies and it is advisable to shift to a provider who is transparent, with no hidden clauses.

• Better Options -

In case you are paying very high amounts for services which can be availed for lesser price in another company, then consider porting. Tough competition ensures you can get better value for your money and get some great deals.

Rules of Health Insurance Portability

There are certain rules instructed by the Insurance Regulatory and Development Authority of India which must be kept in mind before opting for health insurance portability.

• Similar health policies -

Policyholders need to keep in mind that only like-to-like or similar health policies are portable, i.e. they can migrate from one basic reimbursement plan to another basic reimbursement plan or from one top-up plan to another top-up plan.

• General/Specialized portability -

Policyholders can port their policies from any general/ specialized insurance company to any specialized/general insurance company.

• Policy types -

Individual or family policies can be ported.

• Renewal -

Health insurance portability is allowed only during the renewal stages of a current policy. Individuals cannot port their policies during other times.

• Notice -

Individuals opting for health insurance portability need to notify their current insurance company in writing about the same, stating the company they wish to port their policy to. This should be done 45 days before their policy is due for renewal.

• Acknowledgement -

Insurers need to acknowledge applications for portability within three days.

Conclusion

The new medical insurance company has the right to reject your request. Or accept it with an increased premium. When you transfer you will need to accept a different plan from the new company. Not all medical insurance policies are same and all of them offer something different, so make sure when you move, you read the policy wordings on your own to understand what you are signing up for. Remember that using medical insurance portability just because your premium is steep or because your insurance company rejected your claims is not a wise idea. You should move only if the new policy is suitable for you.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.