Things You Need to Know About Health Insurance Portability in India
When hearing ‘portability,’ people’s minds often jump to changing telecommunication service providers for better connectivity and deals. However, many need to be aware that healthcare insurance policies also offer the convenience of portability. Switching insurance companies might seem daunting, but with healthcare insurance portability, policyholders can easily transfer their policy to a new insurer while retaining all the benefits and coverage.
But the question arises how? This article will explore health insurance policy portability and its benefits. It will also cover the guidelines and the factors before considering the health insurance portability.
What is Healthcare Insurance Portability?
Healthcare insurance portability helps individuals to change their health insurance companies after purchasing a policy. While insurance companies typically offer a 15-day free look period, portability becomes valuable if someone is dissatisfied with their purchase after this period has ended.
What are the Guidelines for Healthcare Insurance Portability?
The guidelines for healthcare insurance portability are as follows:
1. 45-Day Notice Period
Apply to the new insurer at least 45 days before the existing policy expires to apply for portability. Additionally, provide the name of the current insurance provider in the application.
2. Like-to-Like Policies
Policyholders should remember that portability only applies to similar or like-to-like policies. It means they can switch from one top-up plan to another or from one basic reimbursement plan to another. However, they cannot port a top-up plan into a critical illness plan.
3. Continuity of Policy
However, If there was a break in the previous policy, the new insurer may deny the policy portability request. It’s essential to renew existing policy on time, ensuring continuity. A timely and uninterrupted policy renewal history will enable customers to port their policy whenever desired.
4. Declining Portability Application
Also, Portability is only sometimes guaranteed, and the new insurer has the authority to reject the portability proposal if they find the risk unacceptable according to their underwriting norms. If this occurs, one option is to return to their old insurer, even if their application for porting their policy is still in process.
5. Underwriting Norms
When reviewing applications for porting Healthcare insurance, the new insurer must follow their underwriting norms. If the current policy has been claim-free and has no pre-existing illnesses, the company may charge a nominal premium.
6. Portability Time Frame
Healthcare insurance portability can only be done during the policy’s renewal stage and not at any other time. It is crucial to remember that portability is only applicable when someone renews their healthcare insurance policy.
What are the Benefits of Healthcare Insurance Portability?
The benefits of healthcare insurance portability include:
1. New sum Insured
The sum insured and the accumulated bonus from the existing policy will be combined to determine the sum insured by the new policy. The existing no-claim bonus will also be included in the new sum insured.
2. Lower Policy Premiums
While posting the policy, the new insurance provider might provide the advantages of the current policy at even lower costs due to the wide variety of policies offered by different insurance companies.
3. Transparency
Porting the policy gives the freedom to choose a new service provider that adheres to transparent practices without any hidden conditions or clauses. Also, It helps customers to opt for an insurer and ensures they have a trustworthy and reliable healthcare insurance plan that meets their needs and expectations.
4. Customised Policy
The portability feature allows customers to customise their existing policy to match their health needs. For instance, buyers can add extra coverage based on their present lifestyle and health status or change the nominee in their policy.
What are the Things to Consider Before Porting Healthcare Insurance?
These are the Important Factors one should consider before porting a Healthcare insurance plan.
1. Extra Grace Period
After applying for a new healthcare insurance policy, the new insurance company must inform within 15 days if the application is accepted or rejected. Policyholders have a 30-day grace period while porting the healthcare insurance is in progress.
2. Always Check Premium
Many individuals choose to switch their health insurance plans to a lower premium. While saving money is important, it’s essential to remember that there are better choices than the cheapest premium.
3. Waiting Periods
Waiting periods can be transferred when someone ports their health insurance plans. They will not have to wait for anything covered under their previous policy.
Conclusion
Healthcare insurance portability allows individuals to switch insurance companies and find better coverage and benefits that align with their changing needs. Policyholders can make informed decisions and ensure seamless transitions by understanding the guidelines and factors involved in portability.
One must prioritise a policy that meets the specific healthcare needs over the lowest premium. Moreover, they must verify the grace period and ensure continuous coverage during the porting process. Moreover, if you are looking for healthcare insurance or want to port their policy, consider Niva Bupa, the best health insurance company in India. They offer the best health insurance plan that provides comprehensive healthcare offerings that cater to evolving health needs.
