The idea was introduced by IRDA (Insurance Regulatory and Development Authority) and is called as Health Insurance Portability. There may be different reasons for portability. Portability simply refers to the facility of transferring a health insurance policy from one insurance company to another. For instance, you might not be satisfied with your present insurance provider’s services and hence you might want to move to a new insurer.
How does Insurance Portability works?
The process is very simple. You are required to submit a request form which would state that you want to port your health insurance policy to another insurer. This form should be submitted 45 days before the renewal date of your existing policy. The decision of accepting the policy will be taken by the new insurer within 15 days of submitting the form.
Benefits of Health Insurance Portability?Some of the benefits of portability are as follows:
- You can change your existing insurer if you are not satisfied with the existing insurer.
- You can opt for any new individual or family insurance policy with the new insurer.
- You will be insured at least up to the amount insured under your old policy.
- The benefits of your previous insurance policy will continue to exist even with the new policy.
Some of the concerns that are attached to portability are:
- You can apply for portability only at the time of the renewal of the policy.
- The new insurer has all the rights to increase the premium amount.
- You are required to submit the form 45 days before the date of renewal of the existing policy.
- The new policy is supposed to be in continuation to the old one. If you have not paid the premiums of the old policy your application for the new policy can be rejected easily.