Purchasing a good health insurance policy involves a process of careful planning and thoughtful comparison of different health plans in the market. However, a policyholder may be compelled to move from one insurance company to another due to certain reasons, like an increase in premium rate or inability to find a network hospital in a new locality, etc.
Earlier, whether you owned senior citizen health insurance or any other standard health policy, you would face the disadvantage of losing out on your benefits like no claim bonus or the credit you gained for the pre-existing disease with respect to the waiting period on switching your insurer. However, with the health insurance portability rules by IRDAI, you can choose your preferred insurance without being bothered about losing benefits.
Understanding Portability of Health Insurance
The portability of a medical insurance policy refers to a policyholder being able to switch from one health plan to another without any loss of benefits the policyholder has accumulated through the previous health policy.
It offers options and flexibility to medical insurance policyholders in India. They can select a different insurer while keeping possession of their accumulated health insurance benefits, like waiting periods, pre-existing disease coverage, no-claim bonuses, etc.
Policyholder’s Rights When Porting a Health Plan
Under the scheme for health insurance portability, the IRDAI grants the insured the right to port health insurance policy (family floater or individual health policy) from a specialised health policy provider to a general insurance company and vice-versa. It is the right of the policyholder to be provided a health plan with a minimum sum insured as under the policyholder’s previous policy.
Additionally, the new insurance company has to provide the policyholder with the credit rating that the policyholder gained for pre-existing conditions, when under the previous insurer. The policyholder also has the right to ensure that both the old and new insurance companies complete the porting process within the timeframe stipulated by the IRDAI.
Port Health Insurance Policy Online – Steps to Follow
To ensure that your medical insurance portability takes place in a seamless manner, the following steps (as per the IRDAI guidelines) must be followed:
- Apply for the Porting in Advance – You have to initiate the process of portability by applying a minimum of 45 days before the expiry of your existing policy. With this approach, you will get sufficient time to ensure the transition without any lapse in your financial coverage.
- Choose a New Plan Carefully – Upon receiving your application, your new insurance company will provide you with essential forms and offer you the option of selecting from their variety of health plans. You should review these plans offered to you and make a choice based on your healthcare requirements.
- Provide Accurate Documents – Select the health plan that suits your requirements in the best possible way. Next, submit all the necessary documents, making sure that the information provided is accurate and complete.
- Assessment of Information – Your new insurer will thoroughly assess the information you have provided, including your medical records and previous claims history. The new insurer will receive this data through IRDAI’s data-sharing platform or your previous insurance company.
- Decision Period – Your new insurance company will evaluate your portability request within 15 days of obtaining your application along with relevant documents. During this decision period, the new insurer will decide to approve or reject your application based on the data they receive.
Benefits of Porting Health Insurance Policy
- Freedom to Select – One of health insurance portability benefits is that you can transfer your insurance policy from an existing insurer to a more renowned one like TATA AIG without having to lose out on the benefits associated with the waiting period.
- Customised Coverage – With the option of porting your health plan, you can select a health policy that meets the requirements of your growing family, health needs and current lifestyle.
- No Loss of Benefits – There is no need to be concerned about losing your accumulated benefits from your previous health policy as all the benefits are carried forward to your new health policy.
- Make the Most of Competitive Premiums – Since insurers want to do business with you, they will offer you the most competitive premium rates. Make the most of this opportunity to save a significant amount of money.
Conclusion
As the cost of medical care services keeps rising, it becomes necessary to find the most appropriate health plan for your family. With health insurance portability, you can shift without any inconvenience to a more affordable health plan with better coverage options. However, that does not mean you should refrain from doing your due diligence before selecting to port your health plan.