Health insurance portability is a feature through which policyholder can transfer his mediclaim policy from an existing insurer to another without many hassles. Just like a facility of mobile number portability, similar idea was launched by Insurance Regulatory and Development Authority in health insurance sector, known as health insurance portability.
Insured person only need to submit an application form to the new insurance company in India starting the porting of your policy to avail maximum benefits of this feature.
Policyholder should be informed by the insurance company in India before his policy renewal date. The new insurance company will take a final decision about accepting the policy within 15 days.
Benefits of Health Insurance Portability
- Insured person can switch the insurance company in case he or she is not satisfied with the current insurer’s services. Person can select any new individual or family policy with the new insurer.
- Under portability feature, advantages of the earlier plan would continue to exist. New insurer has to insure policyholder at least up to the sum insured under the old insurance policy. But, there are some conditions to avail the benefits of portability.
- Like; health insurance portability is allowed only at the policy renewal time. Applicant should submit the form at least 45 days before the date of renewal. The new insurance company has complete authority to decide premium amount.
- Continuation of policy is must. In case policyholder fails to pay the premium, then new insurer may not accept the portability.
- In circular, IRDA clarified that health insurance companies in India shall eligible for credit gained by the insured for pre-existing health conditions or critical illnesses in terms of waiting period when policyholder goes from one insurer to another, provided the earlier policy has been continued without break.