<p>The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a great concept to protect and empower customers who are not satisfied with their current health insurance policy. A policyholder can transfer his/ her existing health insurance policy from the current insurer to another without losing out on the benefits accumulated.<br /><br /></p>.<p>This was not possible a few years ago. This regulation is valid not only for a move from one insurer to another, but is also relevant when porting out from one retail plan to another retail plan within the same company.<br /><br />As per the rules laid down for porting health insurance policies, transfer can be done from and to any general insurance company or standalone health insurance company. It is applicable to both individual health insurance policies and family floater policies. <br />In order to port to a new health insurance policy, the policyholder can opt for portability only at the time of policy renewal and the application should be submitted at least 45 days before the date of policy renewal. <br /><br />This can be done by writing to the new insurer requesting for porting of the existing policy into the new policy without losing on the continuity benefits under the current policy. The best part is that there are no porting charges involved. However, the policy must be in continuation or the new insurer might reject the portability request in case premiums are not paid.<br /><br />On porting, the new insurer will have to waive the waiting periods for pre-existing conditions and other disease specific exclusions based on the number of years completed in that specific policy. Please note that the continuity benefit is applicable to the sum insured under the current policy and the same can be carried forward. In case a policyholder wish to increase the sum insured, he/ she is free to do the same, however continuity will apply only on the ported portion of the sum insured. <br /><br />Similar policies can be ported<br />While understanding the benefits of portability, it is also essential to know the circumstances under which it is possible. Only similar health policies can be ported. For instance, a group insurance policy cannot be ported into a retail insurance plan. <br /><br />Apart from the waiting period credit, all other terms of the new policy including the premium, are at the discretion of the new insurer. Additionally, if a policyholder applies for an increase in cover, the entire pre-existing diseases, waiting period should be served as mentioned earlier. <br /><br />If the previous insurer has a three-year waiting period and the policyholder has served that, but the new insurer mandates four years, the policyholder will have to serve one more year in order to avail pre-existing diseases coverage under the new policy. <br /><br />Porting should be a cautious assessment. When a policyholder shifts to a new insurer, he/ she will have to undergo all underwriting procedures just like a new policyholder. There may be a loading for porting which will only be decided after the completion of medical risk assessment and based on the current health condition of the person. There is also a possibility that the new insurer might reject the policy based on its underwriting guidelines, which may differ from the policyholder’s existing insurer.<br /><br />From a policyholder’s standpoint, there are numerous benefits of porting. It will allow them to carry their policy to another insurer, keeping the benefits of their previous policy and without compromising on the pre-existing diseases cover. Other benefits include more competitive premium pricing by insurers, innovative product offering and more transparency, among others. <br /><br />While porting allows a policyholder to choose a new health insurance plan in terms of premium and benefits, it is also important to understand the benefits of the existing policy and match it with the benefits of the plan one desires to port to. Some factors to compare can be flexibility and slabs for sum insured, pricing, restrictions on entry age, renewal limits, waiting period, ailments covered, guidelines for pre-existing diseases, better claim settlement ratio and the list of network hospitals and services. Health insurance portability is a great boon considering that policyholders do the necessary research in terms of understanding the pros and cons of portability.<br /><br />(The writer is Head of Product Development at SBI General Insurance)</p>
<p>The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a great concept to protect and empower customers who are not satisfied with their current health insurance policy. A policyholder can transfer his/ her existing health insurance policy from the current insurer to another without losing out on the benefits accumulated.<br /><br /></p>.<p>This was not possible a few years ago. This regulation is valid not only for a move from one insurer to another, but is also relevant when porting out from one retail plan to another retail plan within the same company.<br /><br />As per the rules laid down for porting health insurance policies, transfer can be done from and to any general insurance company or standalone health insurance company. It is applicable to both individual health insurance policies and family floater policies. <br />In order to port to a new health insurance policy, the policyholder can opt for portability only at the time of policy renewal and the application should be submitted at least 45 days before the date of policy renewal. <br /><br />This can be done by writing to the new insurer requesting for porting of the existing policy into the new policy without losing on the continuity benefits under the current policy. The best part is that there are no porting charges involved. However, the policy must be in continuation or the new insurer might reject the portability request in case premiums are not paid.<br /><br />On porting, the new insurer will have to waive the waiting periods for pre-existing conditions and other disease specific exclusions based on the number of years completed in that specific policy. Please note that the continuity benefit is applicable to the sum insured under the current policy and the same can be carried forward. In case a policyholder wish to increase the sum insured, he/ she is free to do the same, however continuity will apply only on the ported portion of the sum insured. <br /><br />Similar policies can be ported<br />While understanding the benefits of portability, it is also essential to know the circumstances under which it is possible. Only similar health policies can be ported. For instance, a group insurance policy cannot be ported into a retail insurance plan. <br /><br />Apart from the waiting period credit, all other terms of the new policy including the premium, are at the discretion of the new insurer. Additionally, if a policyholder applies for an increase in cover, the entire pre-existing diseases, waiting period should be served as mentioned earlier. <br /><br />If the previous insurer has a three-year waiting period and the policyholder has served that, but the new insurer mandates four years, the policyholder will have to serve one more year in order to avail pre-existing diseases coverage under the new policy. <br /><br />Porting should be a cautious assessment. When a policyholder shifts to a new insurer, he/ she will have to undergo all underwriting procedures just like a new policyholder. There may be a loading for porting which will only be decided after the completion of medical risk assessment and based on the current health condition of the person. There is also a possibility that the new insurer might reject the policy based on its underwriting guidelines, which may differ from the policyholder’s existing insurer.<br /><br />From a policyholder’s standpoint, there are numerous benefits of porting. It will allow them to carry their policy to another insurer, keeping the benefits of their previous policy and without compromising on the pre-existing diseases cover. Other benefits include more competitive premium pricing by insurers, innovative product offering and more transparency, among others. <br /><br />While porting allows a policyholder to choose a new health insurance plan in terms of premium and benefits, it is also important to understand the benefits of the existing policy and match it with the benefits of the plan one desires to port to. Some factors to compare can be flexibility and slabs for sum insured, pricing, restrictions on entry age, renewal limits, waiting period, ailments covered, guidelines for pre-existing diseases, better claim settlement ratio and the list of network hospitals and services. Health insurance portability is a great boon considering that policyholders do the necessary research in terms of understanding the pros and cons of portability.<br /><br />(The writer is Head of Product Development at SBI General Insurance)</p>
