A Simple Guide to Port Your Health Insurance Policy
12 Sep 2017
Imagine yourself in a scenario where you are stuck with a health insurance plan that does not satisfy all your needs and preferences. Understanding the predicament of those who are not happy with their existing policy, the IRDA introduced some specific policies and guidelines for portability of health insurance as a respite to those who would like to avail better options. These guidelines allow for the transfer of a health insurance plan that has been availed from one insurer to another, thereby allowing customers to escape the clutches of a policy that they are not happy with.
Similar to how you can retain the benefits accumulated through your bike insurance policy when you transfer it to a new owner portability of health insurance is a procedure that can help you reap all the benefits of your existing as well as your new policy if you are diligent enough to make the right moves. The main benefits that you can retain when porting a health insurance plan include the credit accumulated for pre-existing health conditions and time-bound exclusions due to the transfer process itself. This means that if you complete two years of the waiting period for pre-existing conditions on your existing policy, you are not applicable to adhere to the waiting period of a new policy that has a two-year waiting period. Let us see how you can proceed with a portability request.
The 6 Step Process of Porting a Health Insurance Policy
The first step involves filing an application to the new insurer within a minimum of 45 days before the end of the claiming period for the existing policy
Once the application has been received by the new insurer, the next step involves filling up forms that cater to the proposal for portability
The third step in the process involves checking the customer’s medical as well as claim history by the new insurer, which is usually completed within a period of 7 days
The fourth step involves the passing of the proposal through the portal created by IRDA as per the format that has been prescribed by the regulatory body, which is a mandatory step for porting a policy
The fifth step is initiated when the proposal has been accepted as per the norms and the guidelines established by IRDA, after which the new insurer frames the proposal as per the underwriting norms that are prevalent in the company
The sixth step is a time bound process, which involves the processing of the proposal and the subsequent release of the final decision. The time period for this step is 15 days, exceeding which the new insurance company is bound to accept the porting request.
Even though portability can be an advantageous process, only about 50 percent of claims are accepted by insurers. Some of the main scenarios where your request for health insurance portability may be denied include:
If the applicant is more than 70 years of age
If the applicant has an adverse medical history with conditions such as hypertension, diabetes or any other chronic disease
If the difference in sum assured by both the policies is too great
Technical issues such as lack of adequate information, break in cover, lack of proper documentation during the filing process, and delay in filing the application
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