Health insurance policy is now portable

By | October 1, 2011

Now you can port your health insurance to any health insurance company in India. IRDA (Insurance Regulatory and Development Authority) today released the advertisement to all newspapers about it.

You can now keep the credit gained in your existing policy even after switching to a new insurance company. You may be aware or not, all medical conditions and pre-existing illness are not covered by all policies. Only few high-premium policies cover those. All other normal health insurances will not cover them for the first two years. They are only covered after you paid your third premium. Suppose if you want to change the insurance company in the fourth year, you need to start afresh with the new insurance company and you will be covered for pre-existing and few complicated medical conditions only after paying third premium.

With portability, you can now change the insurance company keeping that “two-year-old policy” credit. You will be readily covered for all conditions by your new insurance company. If you don’t like your current insurance company or if you find a better policy offered at less premium, you can change it. You should apply at least 45 days before its renewal date.

The advertisement read as following:
•  Portability means transfer of the credit gained by the insured for pre-existing conditions and time bound exclusions if the policyholder chooses to switch from one insurer to another insurer or from one plan to another plan of the same insurer, provided the previous policy has been maintained without any break.
•  A break in policy occurs when the premium due on a given policy is not paid on or before the premium renewal date or within 30 days thereof.
•  A policyholder should apply to such insurance company at least 45 days before the premium renewal date of his/her existing policy for porting his/her policy.
•  The policyholder should fill in the Portability Form along with proposal form and submit the same to the insurance company.
•  If the insurance company does not communicate its decision to the requesting policyholder within 15 days of providing all the details as required by the insurer, the insurance company shall not retain the right to reject such proposal.
•  Portability is allowed to all individual health insurance policies issued by non-life insurance companies including family floater policies

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