Health Insurance portability has made it easier for insurance holders to change or update their existing health insurance plan to seek better benefits and services. As per the guidelines of the Insurance Regulatory and Development Authority of India (IRDA), it is now possible to change the policyholder of the existing health policy under the portability of health insurance in India provision. This not only allows the customers to have the most suitable healthcare policy but also make them valuable to the insurance company as they can now change the policyholder midterm.
There are a number of advantages that health insurance portability has to offer besides the freedom of changing the policy provider midterm.
Why choose portability of health insurance in India?
By making all the health insurance policies in India portable, the IRDA has taken an advanced step in offering the customer the right to choose the best policy with advanced benefits. The provision is applicable to all health insurance providers in India and hence a policyholder has several options to choose from.
Besides the ease of migrating from one health insurance provider to another, there are more benefits associated with the portability of health insurance in India including:
• Credit for waiting periods
• Pre-existing diseases related exclusions
What type of health insurances are portable?
As per the health insurance guidelines of IRDA, the following types of health insurance is eligible for portability:
1. Any life insurance policy issued by any non-life insurance company. This includes all family floater policies as well.
2. It allows an individual covered under a family health insurance plan to opt out and choose an individual health insurance plan instead. However, the individual has to opt for a health insurance policy offered by the same insurance provider, after which he can seek the benefit of health insurance portability in India.
How to use health insurance portability option?
The complete process of portability of health insurance in India is as follows:
• Procure standard portability application form and the proposal form from the new health insurance provider’s office or website and submit it after filling all the information.
• The new insurer would audit the details of claim history and medical records after procuring them from your existing health insurance provider.
• The existing health insurance provider is liable to offer all the desired information to the new health insurance provider within 7 days of the request.
• The new insurer would assess your proposal along with your health details and in case you qualify for their company’s terms and conditions, you are intimated about the process further.
In case, the new insurer fails to intimidate you within 15 days of filing the application, the new insurer loses its right to reject the application.
It is important to note that you must apply for changing the health insurance provider under the portability of health insurance in India provision before 45 days of the renewal date. In case, you apply after this period, the insurance service provider, who you want to port to, has the rights to decline the application.