As healthcare needs change, the health insurance policy chosen earlier may no longer offer the coverage a policyholder is looking for. This does not necessarily mean losing the continuity benefits earned under the existing policy. Through health insurance portability, a policy can be moved to another insurer at renewal while eligible continuity benefits are carried forward. Knowing the eligibility requirements, timelines, and process can make the switch easier to plan.
What Is Health Insurance Portability?
Health insurance portability allows a policyholder to switch from one insurer to another at renewal while carrying forward certain benefits earned under the existing policy. These may include eligible waiting-period and other continuity benefits, subject to applicable rules.
When the policy is ported, the new insurer considers these accrued benefits and eligible continuity periods when issuing the new policy, subject to applicable rules and its underwriting process.
Who Is Eligible for Health Insurance Portability?
Health insurance portability is available for individual, family floater, and group health insurance policies under the provisions set by the Insurance Regulatory and Development Authority of India (IRDAI). The request needs to be made in connection with the renewal of the existing policy.
There is also a specific window for submitting the request. Generally, it should be made between 60 and 30 days before the renewal date.
What Benefits Can Be Carried Forward?
The benefits of an existing health insurance policy that can be carried forward generally include the following:
- Waiting-period credits for pre-existing diseases
- Credits for specific waiting periods
- No Claim Bonus, where applicable
- Credit related to the moratorium period
- Benefits linked to the previous sum insured, subject to applicable rules
The benefits carried forward depend on the previous policy’s sum insured and eligible accumulated credits, subject to the applicable rules.
Portability does not mean that every feature of the old policy automatically carries over. The new policy can have different terms, conditions, coverage features, exclusions, limits, and cost-sharing provisions.
How Does the Portability Process Work?
The portability process generally involves the following steps:
- Start the request: Submit a portability request to the new insurer within the prescribed renewal window.
- Fill in the forms: Provide the required information through the portability form and proposal form.
- Policy details are requested: The new insurer obtains relevant policy and claim information from the existing insurer.
- Information is provided: The existing insurer must share the requested information within the set timeline after receiving the request.
- Proposal is assessed: The new insurer reviews the information and evaluates the proposal under its applicable underwriting process.
- Decision is shared: The new insurer communicates its decision within the prescribed timeline after receiving the required information.
Does Porting a Health Insurance Policy Cost Money?
Porting a policy does not involve a separate portability charge. However, the new policy can have a different premium. This is because the new policy is priced according to the new insurer’s applicable pricing and underwriting terms.
So, portability charges and policy premiums are two different things. Before making the switch, compare the applicable premium and check what the new policy covers, along with its exclusions, deductibles, co-payments, and other terms.
Conclusion
Health insurance portability can be particularly useful when the existing policy has built up significant continuity benefits over several years. Before making the switch, it is worth checking how these accumulated benefits will apply under the new policy and whether any changes in coverage, limits, or cost-sharing terms could affect their value. This helps the policyholder understand what is being retained and what is changing when the policy moves to a new insurer.
