Mrs. Simran, a 27-year old working professional employed at a multi-national company, had purchased a health insurance policy three years ago. She, however, wishes to port her existing policy to another insurance provider due to greater benefits offered at a lower price. Mrs. Simran wonders if she can make the switch from her existing insurance company to a new one.
The good news is that the Insurance Regulatory and Development Authority of India (IRDA), the statutory insurance regulation agency of India, now allows individuals to transfer their existing health insurance policy to a new provider. This comes as a huge relief to those who are unhappy with the features and benefits of their existing insurance plan. Health insurance portability safeguards customers from being taken for granted, by giving them an opportunity to make a switch at the time of policy renewal.
Benefits of porting your health insurance policy
Many individuals are not aware of the fact that the IRDA now allows health cover portability. By doing so, you may avail of numerous benefits.
Following are four major reasons why the transfer of health insurance plans is beneficial for policyholders.
- Allows customization
While porting your existing medical insurance plan to another provider, you may change or modify the cover according to your current health conditions. You may also consider your lifestyle changes. For example, you may choose an additional rider to supplement your health policy. Besides, you may add new nominees if you wish to do so.
- Provides existing benefits
While calculating the sum assured under the new health plan, your current sum insured is taken into consideration along with any bonus accrued during the policy year. This ensures that you do not lose out on any existing benefits. Besides, you may avail of the benefit of No Claim Bonus (NCB) on your new medical insurance policy.
- Offers lower premiums
While this may not apply in all cases, some insurance providers offer existing benefits at a lower rate. In this world of cutthroat competition, this is done to attract new customers. Customers, on the other hand, are recipients of such a benefit and may enjoy numerous advantages at a lower price.
- Offers options
The option to port your existing health insurance plan is applicable to both individual policies as well as family floater plans. You, therefore, are not bound to just a single type of insurance plan for portability. You may enjoy the flexibility to make the switch between any types of policies issued by a non-life insurance provider.
The aforementioned points throw light on the various benefits of health insurance portability. You may, therefore, transfer your health policy from one insurer to another insurer if you wish to do so. You may consider making the switch in case of any of the below-mentioned reasons:
- Bad service quality
- Late reimbursement
- Lower claim settlement ratio
- Lower coverage
- Hike in premium in case a claim is made
- Hidden clauses and conditions
- Better product features and benefits
- High co-payment clause
It is important to consider numerous factors before porting your medical insurance policy. You may keep in mind various aspects such as the 45-day notice period, new insurer’s acceptance period, waiting period clause, and underwriting process, besides others before making the switch. You may also understand the benefits of portability as well as the procedure to do so. This goes a long way in helping you make the best decision with respect to your health insurance policy.