What exactly is health insurance portability?
Everyone was supremely excited when IRDA announced the Portability of the Health Insurance Policies. This was perceived as great news and even the Health Insurance Companies thought this news would help boost their business considerably. But, now people seem to have almost forgotten it in less than a year or it is being taken for granted?
Health Insurance Portability is a regulation where an individual will be able to switch between insurers at their own free will without having to worry about their No Claim Bonus and Pre-existing diseases cover. It is very similar to Motor Insurance Plans where an individual can move from one Motor Insurer to another and yet get a No-Claim Bonus if there hasn’t been any claim in the previous year. Thus, if you are not happy with your insurer, you can move to another insurance company who promises better service.
Thus, Health Insurance Portability will allow all existing health insurance policyholders to freely switch their policy to another insurance company, without losing on benefits like the credit earned on pre-existing diseases and no claim bonus etc.
Thus, if you are shifting locations, changing jobs, or dissatisfied with your insurer, you can move from your present insurance policy. Or if you find different or more suitable features in another policy, you may shift from your present insurance policy. However, you need to weigh the pros and cons of the same at your end as well.
What it means?
Portability of a Health Insurance Policy means that you can change your Insurer without having to forego the benefits of remaining with the same insurance company.
Some Health Insurance Policies provide certain benefits ONLY after completion of a specific waiting period. However, the benefits would continue only if the policy has been continued without any break.
- Pre existing Diseases are covered only after 36 to 48 months of continuous renewal.
- Maternity Benefits are provided after 36 months of continuous renewal
- Other time bound exclusions
How does it benefit you?
- You can move from one insurer to another without having to worry about Time Bound Exclusions
- You can choose a different Insurance Policy based on your changing lifestyle and varied requirement
- For transfer of the policy, the new Sum Insured would be existing Sum Insured + Accrued Bonus
- Even No Claim Bonus would be added into the Sum Insured that is transferred
Things you must keep in mind
- The premium may change due to the increase in age, health conditions, etc. if you move to another insurer
- The policy needs to be continued without any break, i.e. all due premiums need to have been paid
- The renewal might take 15 to 45 days of time, and hence you need to approach the insurer well in advance
- The new insurer would accept the policy according to its own terms and conditions, irrespective of the previous terms and conditions
The author is CEO of MyInsuranceClub.com and can be reach at firstname.lastname@example.org