Health Insurance Portability

To provide policyholders with various benefits this new concept has also emerged of portability. The Insurance Regulatory and Development Authority of India (IRDA) have devised a convenient method that comes as a welcome relief to those unhappy with their current health insurance providers. Health Insurance Portability allows policyholders to transfer their existing health insurance policies to a new health insurance provider. Portability safeguards customers from being taken for granted by insurance companies, gives them flexibility, and offers better and more options.
IRDA’s circular on Portability of Health Insurance clearly states that the portability request must be filed with the new insurer 45 days before the existing policy expires, otherwise it may be rejected.

Benefits of Health Insurance Portability
1. Customization
Policyholders can change/ modify the current policy as per their current health requirements. For instance, one can opt for additional cover, add fresh nominees etc.

2. Lower Premiums
Due to intense competition, insurance companies usually offer existing benefits at lower premiums.

3. Benefits remain intact
All benefits of the older policy remain in force even after portability. Also, portability can be opted for without worrying about time bound exclusions.

Reasons to choose portability option
1. Poor service quality
2. Late Reimbursements
3. Hidden clauses and conditions - Lack of transparency
4. Inadequate cover for specific health issues
5. Better deals and more economic offerings from another health insurance provider.
6. Hiked premium, in case a claim is made.

Process for Insurance Portability
1. On receiving the portability request, the new insurer provides a proposal and a portability form and gives details of various available products.
2. The policyholder must select a suitable product, and submit the duly filled proposal and portability forms to the new insurer.
3. After the new insurance company receives the forms with the details, they approach the previous insurer or log on to the IRDA website to check details like applicant’s claim history, medical records, etc.
4. The existing insurer must furnish all requisite details through IRDA’s common data-sharing portal within seven working days. In case of delays in sharing this information, the new insurer can hold the porting request acceptance in abeyance.
5. Once the new insurer receives all the information, they decide on underwriting the policy within 15 days. If the new insurer does not take a decision within this period, they are bound to accept the portability application.

Required Documentation