Recently when I renew my family floater health insurance policy the insurance provider asked me 20% more premium. No claim for any member who is covered under the health insurance policy has been made for the last year so there is no chance of premium increment in that way. When I enquired to the agent why the premium has been increased so much I did not get any suitable reply. I am still searching for the suitable reply.
At the same time I have decided to move out from the New India Assurance policy. I have bought the policy because it’s Government Company and its high claim settlement ratio. But after getting the feedback from others and high premium I started exploring other health insurance policy. I also searched for porting of health insurance policy so that I continue to enjoy the benefit of existing policy or benefit of paying the earlier premiums.
In this article you will get to know how to port medical insurance policy.
What is Porting of Health Insurance Policy?
Switching a health Insurance policy from one insurer to other insurer without losing any credits gained on preexisting conditions or other benefits due to the premium paid for earlier years.
Suppose you have taken a health insurance policy from Insurance provider A. While claiming from A, you face lot of difficulties in the process and you decide to change the insurer. You want to buy the insurance from another organisation called B. Insurer A has clause of covering the pre-existing diseases for 2 years.
Insurer B has clause of covering the pre-existing diseases after 3 years. If you are with Insurer A for two years and change the insurer now, the new waiting period with insurer B is for 1 year only. This means your waiting period of two years has already been covered with insurer A.
As per IRDA, all health insurance policy can be ported. This porting is also applicable for other product of the same insurance company. The health insurance policy may be individual type or family floater type. See the IRDA notification on Portability of Health Insurance Policies.
The sum insured of the new insurance should be at least the same as old insurance policy.
Important Points to keep in mind before porting a policy?
You can be denied of being issued a insurance policy if you are not maintaining your policy regularly. It is important to renew the policy or port the policy before it is expired. The new insurer may deny to issue a policy if you miss the policy expiry date by some days. So, you must be extremely careful about the dates of expiration and maintain a sound track record of renewing the policy on time.
This is the most important clause for porting of a health insurance policy. There are 3 types of waiting period for a policy.
The first one is mandatory waiting period of 1 month when insurer does not accept any claim unless the accidental case.
2-3 years waiting period for pre existing illness depending on the insurer.
Apart from above two there is one more waiting period of 4years for specific ailments such as kidney stone, heart disease etc.
If you have already have a policy of 2 years, the new insurance company will cover the first two waiting period and you have to wait for 2 more years to cover the third type of waiting period and the specific diseases under the new health insurance policy.
Policy holders have to opt for the minimum sum insured as it was in the earlier health insurance. You cannot decrease the sum insured in the new insurance policy. Moreover, if the new insurance company does not have the product with earlier sum insured you have to take sum insured more than the earlier one.
As an example suppose you have a health insurance of cover Rs 1lakh. The insurer has product of minimum cover Rs 2 lakhs. You have to take the policy with cover of Rs 2 lakhs.
Premiums & Bonus:
The premium & bonus structure may not be same for both old and new insurer. Some insurer add the sum insured as a no claim bonus and some insurer gives the benefit in next premium of the policy renewal.
Hence, when you show the policy to the new insurer check the premiums and how they are calculating the no claim bonus.
If you don’t know how to save on premium for Health Insurance know these important factors on which premium depends and reduce your premium significantly on Health Insurance.
As already said, you should apply for the renewal of the policy to the new insurer at least 45 days before the old policy expires. Strictly follow that otherwise you may be ned up with not renewing the policy and there will be break in the policy.
By the way, there is a 30 days grace period in the policy shifting. If the insurer is delaying to issue the fresh policy it would not be taken as break up to 30 days from the old policy expiry date.
However, it is always to be great on time. Make sure to apply befor e45 days and make it happen well above in time.
Benefits of Porting Health Insurance Policy:
- If the policyholder gets a bad behaviour or experience with the insurer and feels that stuck into the policy he can move out from the policy and start a fresh with new insurer without affecting the earlier benefits.
- As a result of the above the insurers will be kind and cordial to the customers which strengthens the insurance market and increase customer satisfaction.
- The policyholder can cutomize the policy as per his/her requirement. Suppose the policyholder needs additional cover or increase the sum insured with the new policy.
- All benefits of the older policy remain unaltered though you have taken the insurance from a new policy insurer.
- The new insurance may give you extra benefit or less premium for the same benefit as they want get you onboard with the insurer.
List of Required Document for Porting of Health Insurance:
The following document are required to submit while porting the health insurance policy.
- Previous year policy certificate issued by old insurer
- Self declaration by policyholder stating the applicability of no claim bonus.
- If no claim bonus is taken, the document such as discharge summary, investigation report etc.
- Filled up proposal form for new insurer
- Filled up portability form for new insurer
How to Port Health Insurance Policy?
You can switch from one health insurance to another with following easy steps.
Step-1: Find out the new policy insurer from whom (The Health Insurance Company) you want to buy the Health Insurance policy.
Step-2: Apply to the new isurer at least 45 days before the old policy expiray date.
Step-3: Policy holder should apply along with portability form to the new insurer for issuing the policy. Don’t forget to sumit all your previous policy details along with necessary information such as no claim etc.(if applicable)or claim document along with discharge summary, investigation reports etc.
Step-4: The application is to be acknowledged by the insurer within 3 days of receiving the application.
Step-5: The insurance company will take information from IRDA portal and frame necessary proposal according to underwriting norms. If the new insurer does not respond to the policy holder within 15 days of the application they cannot deny issuing a fresh policy to the policyholder.
Step-6: This way the policy can be renwed without any break. By the way there is 30 day grace period if porting is under process.
The transfer of health insurance to another company has its own benefits and you can take that benefit by changing your insurance. The chances of a new insurance company accepting a consumer from other insurer is easy when he is healthy and there is no health complications.
If you have health ailments in the earlier year and you want to port the policy in the very next year, the maximum probability is to not accepting the insurance application by the new insurer. In that case it is better to stick to the old insurer to get the most benefit.
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