Main advantages and disadvantages of changing health insurance policies

To protect the interests of clients, IRDAI has allowed the portability of health insurance policies.

It is the right given to individual health insurance policyholders, including all members under family coverage, to transfer their policy to another insurance company with transfer of earned credit for pre-existing conditions and time-limited exclusions .

Industry experts say policyholders should consider transferring their policy if they don’t like it and are unhappy with their current policy.

Therefore, if you are not satisfied with the services of your current insurer or if you plan to consider other features of your policy that are not available in the existing policy, you can always transfer your health insurance policy upon renewal with any general. Insurance or health insurance company without losing any of the advantages previously acquired.

Note that you only need to contact the insurer you wish to take out the policy with at least 45 days before your policy expires, but no more than 90 days.

Here are some of the benefits of portability;

According to Supriya Rathi – Full Time Director, Anand Rathi Insurance Brokers, portability can be of immense help to an insured in the event of;

Dissatisfaction with the service of the police or the claims provided by the insurer

Lack of transparency in the case of policy conditions or clauses

Best and competitive offer in terms of font features

Time-limited exclusions in existing policy, waiting period acquired in existing policies, can be transferred to new policy.

However, Rathi points out, “the portability option can only be exercised at renewals, and the policy must be in force without any burglary insurance.” The request for portability with the new insurance company must be made at least 45 days before the renewal date.

The regulator further clarified that if the result of accepting portability is pending with a new insurer, the existing policy should be extended at the request of the policyholder for a short period by accepting a premium at pro rata for such a short period. “The existing insurer should not cancel the existing policy until a confirmed policy from a new insurer is received or there is a specific written request from the insured,” says Rathi.

Portability is limited to products that cover similar risks, such as Basic Reimbursement to Basic Reimbursement policies, etc. Also, there is no additional cost involved in the case of portability. The policyholder only pays the selected premium.

“Individual members, including family members covered by an indemnity-based group health insurance policy, have the right to migrate from such a group policy to an individual health insurance policy or family floating font before opting for portability,” says Rathi.