Should you switch insurers using portability, or stick with your existing one?

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Health insurance portability was introduced by IRDAI to give policyholders more control. The idea is simple: if you’re unhappy with your current insurer’s service, claim process, or premium hikes, you can shift to another company without losing benefits like waiting periods already served. On paper, this looks like a powerful option, especially if you feel stuck with a poor policy.

When switching makes sense Switching insurers can be worth it if your current plan feels outdated or overpriced. For example, many older policies don’t cover modern treatments such as robotic surgeries or day-care procedures. If your insurer keeps hiking premiums sharply or denies cashless claims frequently, portability can give you a better deal. It also helps if another insurer offers higher sum insured options, wider hospital networks, or value-added features at similar costs.

The catches you should know While portability protects your continuity benefits, the new insurer still has the right to assess your risk profile. This means if you’ve developed health issues since taking your last policy, the new insurer may increase premiums, add exclusions, or even reject the switch. Portability also needs to be requested at least 45 days before renewal, so you can’t leave it to the last minute. Another drawback is that only similar types of policies can be ported—you can’t switch a basic policy into a high-end product overnight.

Why sticking with your insurer may still work Sometimes, it’s better to stay put. If you’ve built up a no-claim bonus or loyalty benefits with your current insurer, leaving may mean losing some perks. Long-standing relationships can also help during claims, especially if the insurer has a proven track record with your family. If your complaints are minor—say, occasional delays in service—it may be easier to negotiate or upgrade within the same company rather than porting.

The balanced approach Think of portability as a safety valve, not a first resort. Evaluate your current insurer’s claim settlement ratio, hospital tie-ups, and premium track record. Compare those with at least two other companies. If the gap is significant, switching could help. If not, sticking around might save you the hassle and uncertainty of moving.

FAQs

1. Will I lose my waiting period benefits if I switch?

No. Under portability rules, your waiting period benefits for pre-existing diseases transfer to the new insurer, provided you maintain continuous coverage.

2. Is it risky to switch if I already have a health condition?

It can be. The new insurer may impose restrictions or loadings. In such cases, continuing with your current insurer could be safer.

3. How often can I use portability?

You can request portability at each renewal, but frequent switching isn’t advisable as it may affect claim handling and consistency.