Many individuals prefer to buy a comprehensive health insurance policy for the family as it is a perfect solution for family heath protection. Insurance planners design plans to cover the expensive medical bills incurred during hospitalization. Sometimes, the policy buyers are unable to enjoy the claims specified in the plan due to many reasons. They can now switch to a better insurer who keeps its promise. Switching insurers does not mean that you will lose the benefits of your existing policy. Under the health insurance portability, the policyholder is able to switch to a new insurer without losing the benefits of his or her current policy.
Health Insurance Portability
General insurance companies have launched 'health insurance portability' program which is applicable only to health policies. According to the portability, if your existing policy covers you under a group of medical claim, you can move to either an individual health insurance policy or a family plan. However, you can move only if you have been with the same company for at least one year. Every employee (including his or her family) who doesn't have any health plan other than the one provided by their employer, enjoys these benefits as well.
You cannot switch to a new insurer at any time. You can apply for portability only 45 days before the renewal of your existing policy. Read these 5 steps to opting for health insurance portability.
It is important to apply to the new insurer 45 days before the renewal date of your existing policy
Once the new insurer receives the form, it will give you a portability form. You should fill it out and submit it along with the filled proposal form.
It is mandatory for new insurers to ask (within 7 days of getting the forms) your existing insurer for your information in detail. The detail includes medical and claim history.
The existing company shares the information to the new insurer through a web portal which is Insurance Regulatory Development Authority.
After receiving the relevant information, new insurer frames the proposal based on its underwriting policy. Within 15 days, it informs you about what to do next.
It is important to know that the new insurer can reject your request. For example, if the maximum entry age for the new insurer's health policy is 60 years and you are more than 60, your application for portability could be rejected. The new insurer can reject it based on its underwriting policy.
What to consider before Applying for Insurance Portability
Before you opt for insurance portability, you must read the insurer's terms and conditions carefully. You must ensure whether the new policy coverage is better than that of the old insurance company. Don't evaluate the companies and plans just on the basis of cost, but also on features they offer you and how they cater to your future needs, service standards, price rise with age, stability and brand equity of the company.