Benefits of Health Insurance Portability

Everyone deserves a second chance!

So did Pradeep Gupta!

He did a lot of research and only after carefully analyzing various health plans he purchased a health policy for himself. However, after a scary medical emergency during the term of the policy, he realised how massively he was off the mark in calculating his health needs. On top of this, he was depressed by the fact that now he is stuck with the insurance company and may have to be with them forever and might have to continue to incur losses even as his medical needs remain unfulfilled. This was when he came across the concept of portability, and suddenly he witnessed a ray of hope!

We are sure you too want to know what he learnt about portability and its benefits?

What is Portability?

Insurance Regulatory and Development Authority of India (IRDAI) has introduced w.e.f 1st October 2011. This concept where you get the option of shifting your health insurance policy from your existing insurer to a new insurer without complications and without losing any of the benefits that you currently enjoy with your current insurer.

How to do it?

If you’re not satisfied with the services provided by the insurer or you feel the sum assured is not enough to cater to your current and future needs, you can apply for portability with a different insurer that meets your requirements. You have to submit a written request to the new insurer about portability at least 45 days before the term of your current plan expires. If the new insurer accepts your proposal and all other terms and conditions are met, they will take a decision within 15 days.

Benefits of Portability

There is a host of advantages you can enjoy by shifting insurers. The major ones are:

1) You can expect more competitive premiums that might lead to lower premiums for at least the same sum assured as your current health policy.

2) To woo you as a customer, the new insurer will try to offer you better services than the previous one. This results in you getting a more efficient and professional service network, making it easier for you to face any health emergencies.

3) The claim settlement process might be smoother and even better than your existing insurer. This makes a lot of difference when you are filing for claims for reimbursement. Getting your money back as part of the claims in a time-bound manner without any hassles is a dream for everyone. Portability can help you tie up with an insurer that keeps this as a priority.

4) You might also be able to avail an upgraded health plan that wasn’t even there in the market when you initially bought your policy.

5) Portability will ensure that your existing health insurance benefits are carried forward in the new plan as well. This includes the accumulated bonus as well as the waiting period for pre-existing diseases. For example, if your current plan has a waiting period of three years for pre-existing conditions and you have completed two years out of it, the new plan will give you credit for this, and you will have a waiting period of only 1 year under the new plan.

6) The waiting period of 30 days from the commencement of policy to enjoy benefits of health plans also gets waived off when you port the policy.

After knowing these advantages, Pradeep applied for portability and was able to get a better health plan with substantial health insurance benefits compared to his previous policy. You can also do the same if you’re not happy in your existing situation. Just find out about the new plans, meet the requirements and get yourself a better deal with Health Insurance Portability.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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