Are you ready to port?

Having issues with your existing policy? Do not worry, you can now port your existing policy with a different insurer.
Choose your policy type and follow some simple steps to port your policy.

Health Insurance

And everything about it!

Health insurance is possibly the best wealth protection tool to safeguard from huge financial losses arising due to any health related contingencies. Health Insurance is an insurance policy that ensures that you get cashless treatment or expense reimbursement, in case you fall ill. It is a contract between a general insurance company and one, which considers expenses incurred when availing treatment. However, the insurance company would pay for your treatment if the medical condition is covered by your policy. As per IRDAI (Insurance Regulatory Authority of India), the premiums payable towards such an insurance policy have tax advantage under section 80D of Income Tax Act, 1961.

There are a lot of incentives for a policy holder to continue renewal of their health insurance policy. Health insurance policies allow you save thousands on taxes under section 80D of Income Tax Act, 1961. The premiums paid towards the policy reduce your annual tax liability, thereby reducing your taxable earnings per year.

With a plethora of options available in the market, the consumer has the power of choice today in deciding the insurance company. Interestingly, the guidelines from the IRDAI in allowing "Portability" of health insurance is a welcome move for the policy holders.

Let us understand what 'portability' is all about, how to exercise it and key benefits.

What is Portability in Health Insurance?

Right of every policy holder

Portability is the right given to the policy holder to move or transfer their existing health insurance policy from one company to another. The critical aspect in portability is to ensure the policy holder (insured) not lose the benefit accrued from his existing policy during the renewal to another insurance company. Portability will provide the choice to the policy holder to select the insurance company of his choice, simultaneously not losing out on the credits gained from his previous policies.

What benefits can be transferred under portability?

Pre-existing Diseases

Waiver of any Pre-existing diseases condition.

Time-bound Exclusions

Waiver of waiting periods for time-bound exclusions (cataract, replacement surgeries etc).

Enhanced Sum Insured

Sum insured enhancement * to the extent of the cumulative bonus acquired from the existing policy.

* — For e.g. if a policy holder had a sum insured of Rs. 3,00,000/- and accrued bonus of Rs. 50,000/- under his existing policy. When he decides to transfer the policy to another insurer and in the event of acceptance of his proposal, the revised sum insured to be offered by the new insurer has to be Rs. 350,000/-.

What policies can be considered for portability?

Individual Health Insurance

All individual health insurance policies issued by General Insurers and stand-alone health Insurers including family floater policies.

Group Health Insurance

Individual members, including the family members covered under any group health insurance policy of a General Insurer or Stand-alone health Insurer shall have the right to migrate from such a group policy to an individual health insurance policy or a family floater policy with the same insurer.

Similar Health Insurance

Portability is allowed only for similar health insurance plans. A reimbursement type plan cannot be ported to a benefit type health insurance plan.

Reasons to Port

Serivce Quality

Unsatisfactory service quality from the previous insurer.

Increased Benefits

Increased benefits in the new policy (nil co-payment, room rent, disease wise sub-limits etc.).

Claim Settlement

Tedious claim settlement procedures with the previous insurer.

Premium Cost

Similar policy offered by a different insurer at a cheaper premium cost.

Key Advantages of Portability

Continuity of Benefits

Continuity of benefits including pre-existing diseases and time-bound extensions.

Better Product

Better Product in terms of benefits and extensions.

Enhanced Sum Insured

Enhancement in sum insured limits.

Better Service

Improvement in service provided by insurer.

How to exercise your option for Portability?

  • Portability of the health insurance policy can be taken up only during the renewal of the policy.
  • Policy holder should approach and submit portability application 45 days before the policy renewal due date to the new insurance company.
  • Submit all relevant documentation including the renewal notice copy from the existing insurer, policy copies of all the previous years.
  • Any further information required from the previous insurer has to be organised and submitted to the new insurer.
  • Once the terms and conditions are agreed, the policy holder can pay the premium to the new insurer.
  • Portability of health insurance policy is subject to UW conditions of the insurance company where the policy is being ported. There are instances when the insurance company can deny portability due to: adverse/bad claims history, lack of information or inadequate information furnished during the application process, terms and conditions of the insurance policy etc.

Note the following while porting of your insurance policy

  • Understand your requirements from a health insurance policy.
  • Evaluate the reasons why you want to go for portability of your existing health insurance policy.
  • Compare the products in terms of benefits (capping, co-payments, room rent limits, sub-limits etc), exclusions, terms and conditions and not on premium pricing alone.
  • Approach the insurance company well in advance prior to the policy expiry date.
  • Disclose all the information correctly on the proposal form.
  • Verify the claim servicing capability of the new insurance company.