Are you not satisfied with your current health insurer? Do you feel a desire to shift your health insurance plan to a better insurance company? It is no hassle anymore with the introduction of a convenient concept known as Health Insurance Portability. The Insurance Regulatory and Development Authority of India (IRDA) now allow the people who are not satisfied with their current insurance companies can transfer their health insurance policies to other Companies they wished to join. This innovative concept has brought a relief to many people. Here many doubts and questions must be arising in your minds like what are the benefits of health insurance portability? Let us have a look at the benefits of health insurance portability but before that we need to know the meaning of health insurance portability.
What is Health Insurance Portability?
As it is quite clear already by the name and the above information, health insurance portability allows the policy holders to transfer their existing health insurance policies to a new health insurance provider without losing any of the benefits that your current health insurer provides you. This is a very convenient as it provides the policyholders with the freedom and flexibility to switch to a better health insurance provider at any point of time without having to worry about losing accrued benefits from the existing policy. IRDA has really made it easy and convenient for the people who wish to change their insurance companies.
Process of Health Insurance Portability
- It is advised to apply at least 45 days before the date of renewal of existing policy in the new insurance company.
- A new insurance company proposal form needs to be filled along with portability form.
- Old Health Insurance Company would be pinged by the new company to seek your details that would include medical history and claim benefits.
- New Health Insurance Company holds the right to reject the proposal of a policyholder if they find medical history and claim, a bit suspicious. But if they don’t reject the proposal within 15 days, it holds accepted.
Benefits of Health Insurance Portability
There are numerous benefits of health insurance portability to policy holders. Along with the flexibility and freedom of transferring the insurance policy to the desired company, Insurance portability allows customization as well. Policy holders can easily modify their current policy according to their lifestyle changes and health conditions. Much more of the benefits of Health Insurance Portability are mentioned below.
- Insurance Portability reduces the chances of the insurers to take the policyholders leniently. You can definitely expect good services from them.
- Insurance companies tend to offer existing benefits at lower premiums in the fear of being beaten by competitors.
- You can opt for portability without worrying about time bound exclusions in case you have completed the necessary waiting periods according to the new insurer.
- Your new insurer is under the obligation to insure you at least up to the sum that was insured under the old policy.
- All companies tend to provide policy holders with better claim settlement history and medical history.
- After you opt for portability, you would be provided with new upgraded health insurance products in most cases.
- In health insurance policy, cumulative bonus can be transferred as well from the existing insurer to the new insurer generally in the form of increase in coverage amount without any additional premium for the same.
- Portability available for waiting period of pre-existing diseases allows you to take into consideration the time that you have spent with the old insurer.
- There is a lot of transparency created with the onset of health insurance portability as a lot of information is shared across the insurers.
- When you opt for portability, you need not pay any extra money except the premium unless in cases where loading amount is charged by the new insurer based on the customer’s medical history.
Health Insurance Portability is a really convenient and flexible way out for the policy holders if they are not satisfied with their current insurers. Because of IRDA, health insurance portability has become a real smooth procedure. Make the most benefits of health insurance portability if in case you are opting for this.