Step-by-step guide for porting health insurance

Mumbai, March 25, 2022

As a policyholder, you may find yourself in a situation where you are dissatisfied with your current insurer. Most policyholders consider cancelling their current policy and buying a new one in such circumstances. But what they do not realise is that in doing so, they will not only end up paying a higher premium but will also lose continuity benefits. So, what do you do? The answer is—porting health insurance.

What does portability entail? What is the procedure involved in porting? Today, we will focus on these questions in detail.

What is health insurance portability?

Porting of health insurance refers to an arrangement that allows the policyholders to switch insurers. Under this, you can transfer your existing medical policy to the new insurer without losing continuity benefits. Health plan portability is similar to porting your contact number from one telecom service provider to another.

However, always remember whether to accept your portability request or not is entirely on the new insurer. The health insurance providers are not bound to accept your request. Before accepting your request, the new insurer considers several factors such as your age, current medical condition, etc.

When should you consider porting health insurance?

There are several circumstances where health insurance portability is beneficial.

  • Poor service

Portability may be an option if your current insurer's services aren't up to the mark or you're having trouble filing a claim.

  • Coverage

If another insurer offers more coverage benefits for the same cost, you can choose health insurance portability. Keep in mind that the scope of coverage differs across insurers.

  • Hidden clauses

Many health insurance companies feature several hidden clauses. These clauses make it harder for you to file a claim for medical expenditures. If during a policy period you discover any clause, consider porting your health insurance.

Benefits of porting in health insurance

Health insurance portability has a lot of advantages. Some of them are:

  • Customised plan: When you transfer your health insurance, you get a lot of flexibility. Depending on your requirements, you can add riders, increase the sum assured and modify other insurance advantages. While transferring your policy, you may also add or alter the nominee’s name.

  • High sum insured: When switching to a new insurer, you don't lose on continuity benefits. The accrued cumulative bonus or no claim bonus in health insurance is added to the sum insured. It also helps in increasing the policy coverage significantly.

  • Lower premiums: The increased competition in the insurance industry allows policyholders to switch to a new insurer at a low policy premium.

  • Simplified claim process: If you find your existing insurer's claim procedure tedious, you have an option to compare the claim settlement process of numerous insurers. As a result, we can say that portability allows you access to simplified claim procedures.

How to port your health insurance?

Step 1: Decide on the new insurer

Before you move ahead with your porting decision, decide on the insurer first. Review the policy benefits and premium costs of different health insurance providers. Choose one that is both inexpensive and offers a variety of advantages.

Step 2: Initiate your portability request

Visit the official website of the new insurer. Fill in the portability form and submit your request. Remember, you must apply for portability at least 45 days before your insurance expires.

Step 3: Verification

Once you submit the form along with the required details, the insurer will conduct a background check. The insurer will want to know your existing and previous medical history. The verification process usually takes 7 to 10 days.

Step 4: Information exchange

As part of verification, your existing insurer will exchange your details and information with the new insurer through the IRDA portal. The details are framed in the format prescribed by the regulatory authority.

Step 5: Proposal framing

Once the new insurer has reviewed all of your information, they will frame the proposal according to their company's policies.

Step 6: Dispatching the proposal

The new insurer will roll out the policy within 15 days of receiving your details from the existing insurer.

To sum it up

Health insurance portability is a simple process. However, before making a decision, you must thoroughly examine all of your needs and your budget.

(Disclaimer: This is branded content. Readers are advised to exercise due diligence and discretion before entering into any correspondence, investment, purchase, business dealings or any other decision on the basis of this content.)

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