IRDA gives nod to health insurance portability

Insurance Regulatory and Development Authority (IRDA) has allowed portability of health insurance products, reports Business Standard. Under the guidelines, policyholders can switch insurers and carry the benefits of the previously held health insurance policy.

The insurance regulator has said that health insurers should allow policyholders to transfer credit when it comes to the waiting period for pre-existing illnesses and bonus sum insured from one company to another.

The move by IRDA is expected to hugely benefit dissatisfied policyholders under duress from poor service from their insurers. However, insurance companies are of the opinion that policyholders would have to find similar cover to their existing policy or move to a completely new plan altogether.