Health insurance requirements often change with age, family responsibilities, medical needs and financial priorities. A policy that once offered adequate coverage may no longer meet expectations, prompting many policyholders to explore better alternatives.
Fortunately, switching health insurers does not always mean starting from scratch. Under the Insurance Regulatory and Development Authority of India (IRDAI) regulations, policyholders can transfer their health insurance policy to another insurer through the health insurance portability facility while retaining key continuity benefits.
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What is health insurance portability?
Portability allows policyholders to move from one insurer to another without losing credit for waiting periods already served, including those applicable to pre-existing diseases. This ensures that customers do not have to restart the waiting period simply because they have changed insurers.
It is particularly useful for policyholders who are unhappy with their existing insurer's customer service, claims settlement experience or hospital network and wish to move to a provider offering better benefits.
However, portability is not automatic. The new insurer will assess the proposal before deciding whether to accept, reject or modify the terms of the policy.
Waiting period benefits continue
One of the biggest advantages of portability is the transfer of waiting period credits. The new insurer is required to recognise the waiting period already completed under the previous policy, allowing policyholders to retain continuity benefits.
But it is important to compare the new policy carefully, including coverage, exclusions, claim settlement process and hospital network, rather than choosing solely on the basis of lower premiums.
How to apply for portability?
Policyholders should submit their portability request to the new insurer at least 45 days before the renewal date of their existing policy.
The application generally requires a portability form, your existing health insurance policy details and previous claim history.
After reviewing the documents and underwriting details, the new insurer may approve the request, reject it or offer the policy with revised terms.
Key conditions to remember
Policyholders should keep a few important conditions in mind before opting for portability:
1. Waiting period benefit is limited to the existing sum insured: If the current policy has a sum insured of Rs 5 lakh and the new policy offers Rs 10 lakh, the waiting period waiver will apply only to Rs 5 lakh. The additional Rs 5 lakh will be subject to fresh waiting periods.
2. Insurers may be cautious about accepting portability requests from policyholders who have made significant claims under their existing policy. It is best to explore portability with a clean claims record.
3. Apply well before renewal: Initiating the process early provides enough time to renew the existing policy if the portability request is declined.
While portability offers policyholders the flexibility to change insurers without losing accumulated waiting period benefits, evaluating the overall value of the new policy is recommended, according to experts.
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