How to Port a Health Insurance Policy
The medical expenses are increasing by the day. Hence, a health insurance policy has become a necessity.
What can be ported?
Such a policy offers coverage against hospitalization expenses, health checkup, and alternative treatment, besides many others.
Numerous insurance providers offer health insurance plans with competitive features and benefits. There may be instances where you wish to switch your mediclaim policy from your existing provider to another provider due to better terms and benefits. Portability of your health plan is a good option if you are seeking a high-level of service along with a host of benefits.
Many are often confused over what aspects of the current plan may be ported. Insurance providers allow similar insurance plans, including floater policies, to be ported. You may port not only individual plan but also health insurance plans for family.. Besides, it is mandatory for the new provider to insure you at least up to the sum insured of the old plan. You may also port no-claim bonuses as well as credits on time-bound exclusions.
Procedure to port your insurance plan
To understand time-bound exclusions, it is important to know that every policy comes with three types of waiting period. The period of 30 days after the purchase of the policy is the first period. During this time, insurance providers mostly cover only hospitalization claims. This period is followed by a waiting period on pre-existing ailments, while the third period is that of specified ailments. Such time-bound exclusions may be ported to your new insurance provider.
You may opt to port your existing insurance policy at least 45 days before the time of renewal. You may request for a portability form and provide the necessary details. The information is then fed into the portal of Insurance Regulatory and Development Authority of India (IRDAI). Your existing insurance provider submits details about the plan coverage and claims. This helps the new insurance company gain access to the history of the insurance plan.
Issues faced while porting health insurance policies
According to statistics, merely 5% of insurance holders avail of the benefit of portability. Most policyholders realize the need to port only after they have had a bad experience while settling a claim with the old insurer.
The chances of the new insurance company accepting the porting request are low if the policyholder has made a claim in the past. The insurance company may either exclude the ailment for which the claim has been made or reject the request altogether. It is, therefore, necessary to avail of a family health insurance policy or an individual plan, while you are still healthy. Once you have been diagnosed with an ailment or if you have made a claim in the past, chances of insurance portability may become difficult. If you are in a higher age bracket or have health issues, it is advisable to be covered under your current insurance provider. In such cases, you may request for an increase in cover to enhance your plan’s utility.
Porting to a reliable insurance provider entails several benefits. You may, therefore, port your existing health insurance policy and maximize your benefits.