Understanding health insurance portability and why you may need it

Opting for a good health insurance policy is imperative. It helps you stay prepared financially for medical expenses that arise due to an illness. However, if you are dissatisfied with your current insurance company, you can port it. According to the government of India, portability means, the right accorded to individual health insurance policyholders (including all members under family cover) to shift his/her policy to another insurance company along with the transfer of credit gained for pre-existing conditions and time-bound exclusions. The Insurance Regulatory and Development Authority of India (IRDAI) has laid down some rules regarding the portability of health insurance. Here is what you need to know: How to initiate it? The applicants must communicate their desire to port their policy to their health insurance provider. The provider has to acknowledge the application within three days of receipt. The applicant must submit documents like identity proof, medical history etc. as well. The portability process must be initiated at least 45 days before the renewal date of the present policy. Policyholders are allowed a 30-day grace period for policy renewal if the porting is under process. They can avail of the grace period if they pay a pro-rata premium to their insurer. While policyholders must renew their health insurance without any breaks to avail of the portability option, if any delay on the company’s part has led to a break in the policy, it will not be considered discontinued and porting will be allowed. Some points to keep in mind: ― Both family and individual health insurance policies can be ported. ― The applicant can port insurance policies only if they are similar in nature. ― There are no charges to be paid for porting your health insurance. ― The premiums may not remain the same even under a similar plan. ― Remember to note the Incurred Claims Ratio (ICR) of a health insurance provider before deciding on porting. According to experts, the ICR must be between 70 to 90 per cent. ― The insurer can reject the porting application if it deems it unfavourable. The policyholder will have no choice but to continue with the existing plan. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.