RIA Insurance Brokers Director S.K. sethi2 hours ago
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Insurance regulator IRDAI has given portability rights to insurance buyers since 2011. This option can be used by the insured person to switch his policy from the existing insurance company to any other insurance company. Here are answers to some common questions related to health insurance portability…
When to choose insurance portability?
- If the insured is not satisfied with the service or claim settlement process of his insurance company.
- If any other company is offering better features, more coverage or lower premium.
- The policy holder’s healthcare needs may have changed and better coverage may be available with another company to meet the new needs.
Know this also… There is no processing fee for insurance portability. Along with this, there is no loss of benefits of the old policy. Only the waiting period for existing diseases found in the previous policy is extended. In this case conveniences remain.
What should be kept in mind while doing port?
- As per IRDAI rules, it is mandatory to start the portability process 45 days before the policy renewal date. In case of refusal by the new company, you will have the option to remain with the existing insurer.
- To avoid claim rejection at a later date, give complete and true information about your medical history to the new company.
- Compare the new and old company’s coverage. Make sure the new policy covers all the benefits you need.
- Choose a reliable insurance company with good claim settlement ratio and customer service.
Is there any disadvantage in porting insurance?
- There can be losses if insurance is ported without proper verification. The premium for the same policy with the new company may also increase depending on your age, medical history and other risk factors.
- The new company may not be able to offer a policy that matches your existing policy.
- Approval of the new insurance company is required for portability. The new company may deny your portability application based on your medical conditions or other factors.
- The new company has the right/option to access your existing health insurance policy details and claim history.
Is it better to get a new plan instead of port?
- If your existing policy is old and the waiting periods for pre-existing health conditions have been completed, it is better to port the policy instead of taking a new plan.
- If your existing health insurance policy provides limited coverage, it may be beneficial to get a new policy, but the waiting period will start afresh with the new plan.
There is also this option: Instead of porting or taking a new plan, you can add add-ons or riders offered by the company to your existing policy and improve the existing plan by paying some additional premium.
