Key advantages and disadvantages of switching your health insurance policy

To shield the curiosity of clients, IRDAI has allowed the Portability of Health Insurance insurance policies.

It is the best accorded to particular person health insurance policyholders, together with all members underneath household cover to shift their policy to a different insurance company together with switch of credit score gained for pre-existing circumstances and time-bound exclusions.

Industry specialists say policyholders ought to take a look at porting their policy if they don’t prefer it and are unhappy with their present policy.

Hence, if you’re not glad with the providers of your present insurer or are contemplating extra options in your policy which aren’t accessible within the present policy, then you possibly can all the time port your health insurance policy on the time of renewal with any General Insurance or Health Insurance company with out shedding any of the beforehand gained advantages.

Note that you just simply have to strategy the insurer from whom you want to purchase the policy at the least 45 days earlier than the expiry of your policy, however no more than 90 days.

Here are some of the Advantages of Portability;

According to Supriya Rathi – Wholetime Director, Anand Rathi Insurance Brokers, portability could be of immense assist to a policyholder within the case of;

·       Dissatisfaction with the Policy servicing or Claims offered by the Insurer

·       Lack of Transparency in case of the policy circumstances or clauses

·       Better and aggressive providing in phrases of Policy options

Time-bound exclusions within the present policy, ready interval gained within the present insurance policies, could be ported to a brand new policy.

However, Rathi factors out, “the portability option can only be exercised at renewals, and the policy should be in force without any break-in insurance.” Application to the brand new insurance company for portability needs to be made at the least 45 days earlier than the date of renewal. 

The regulator has additional clarified that if the result on acceptance of portability is pending with a brand new insurer, the present policy needs to be prolonged if requested by the policyholder for a brief interval by accepting a pro-rata premium for such a brief interval. “The existing insurer should not cancel the existing policy until such time, a confirmed policy from a new insurer is received or there is a specific written request from the insured,” says Rathi. 

Portability is restricted to merchandise that cover related dangers, corresponding to primary reimbursement to primary reimbursement insurance policies and likewise. Also, there isn’t any extra price concerned within the case of portability. The policyholder pays solely the premium opted for.

“Individual members, including the family members covered under an indemnity based group health insurance policy, has the right to migrate from such a group policy to an individual health insurance policy or a family floater policy before opting for portability,” explains Rathi.  

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