Key points to bear in in mind while porting your health insurance policy

Did you know that you can port your health insurance policy just like your mobile number? If you are not happy with your policy, you can switch to another insurer of your choice as per IRDA regulations. But let us discuss first what would be the right reasons to switch to another insurer.

The right reasons to port:

If you are getting the same coverage with comparatively low premium under a different insurer, it should not be the primary consideration to switch. If there are too many restrictions in the policy which prevent you to optimally use the health cover benefits, then you can consider switching to another insurer. Further, insurance companies today offer new age products with cumulative bonus which can easily increase the cover up to a maximum 100 per cent of sum assured for the claim-free years. Even 100 per cent restoration benefit is available in many products. If your products lack such features and your sum assured is peanuts, you can opt to switch policy which allows you to maximise the cover in line with rising healthcare inflation. Further, poor claim settlement experience and poor customer service are good reasons to switch to another insurer.

What can be ported:

When your policy gets ported to the new insurer, the benefits accumulated along with the sum assured covering you and your family continue. These include cumulative bonus which will carry forward in the new policy. Even the waiting period on specified illnesses and pre-existing diseases will continue with your new insurer.

Things to bear in mind:

  • You can port your policy only when it is due for renewal. You will have to inform your existing insurer 45 days prior to the renewal date.
  • Before shortlisting the new policy, check the inclusions and exclusions, cumulative bonus, sub-limits, room rent capping and other restrictions. If these compare better than your old policy, then it makes sense to port the policy.
  • If you wish to increase the sum assured, fresh waiting period will apply on the new cover (not on the old cover).
  • Ensure that you make complete disclosures about your medical history to the new insurer. This should include not only the medical condition that existed prior to purchasing the old policy but also any diseases that were diagnosed and treated during the term of the old policy.
  • The new insurer is under no obligation to port the policy of your choice. Based on age, health conditions, lifestyle and other disclosures, if the new insurer finds your profile too risky, they can decline your portability application. They can also impose exclusions or apply loading and charge additional premium for the same coverage. The chances of portability could be lower with high age and any complicated medical history.

Portability process:

The portability process should be initiated 45 days prior to the renewal date of your old policy. You must submit a new proposal form in addition to the portability form and additional documents like identity and address proof, medical history, etc. After receiving your request for portability, the new insurer will contact the previous insurer to inquire about your medical and claim history. Then, according to its underwriting standards, the new insurer may accept the request, suggest coverage, or even reject your portability request.

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