Unhappy With Your Health Policy? Port To A New One

By Adhil Shetty | May 22, 2017

Policyholders may sometimes have reasons to be unhappy with the product or services of their insurance provider. It might seem like a sticky situation, but there is an escape route. The Insurance Regulatory and Development Authority of India (IRDAI) allows policyholders to port their policies from one insurance company to another.

It is similar to porting your mobile number from one operator to another. The benefits accumulated over the years such as no claim bonuses, reduced waiting period, etc. are also passed on to the new policy. Also, portability need not be from one insurer to another. It can also be done between insurance plans of the same insurer.

Salient Points

When to port:

According to IRDAI guidelines, you can port from one policy to another only at the time of renewal. The process involves filing of an application at least 45 days before the renewal date of the existing Health Insurance policy. However, submission of an application does not guarantee porting. The new insurer holds the right to accept or reject it on assessment of your request.

Existing policy documents need to be in place

The existing policy papers, including documents made for claims, need to be submitted to the new insurer through the IRDAI. Make sure you have not had a single day’s break in your insurance premium. Policyholders over the age of 45 years are more likely to face rejection if they don’t have the policy documents in place.

Time cut off for new insurers

According to IRDAI norms, the new insurer has to respond within 15 days from the time of application for portability. In case of delay, the new insurer has to provide you with updates, failing which they would have to accept the application even if the request made by the policyholder is not in alignment with company’s rules and regulations. Meanwhile, you can continue with your existing insurer and make payments on a pro-rata basis for the short-period coverage.

Waiting period

There are three types of waiting periods in Health Insurance. The first one is 30 days for fresh policies. The second one is for diseases that are covered after a period of one or two years, such as kidney stones and appendicitis. The third waiting period is of four years for pre-existing diseases such as Type 2 diabetes, cancer and heart disease. When you port your insurance, you do not need to start the waiting period all over again.

Underwriting rules

The new insurer will have its own set of underwriting policies to which your application will be subjected to. Usually, a person older than 45 years is asked to undergo a health check-up. High Body Mass Index or a pre-existing disease could result in rejection, exclusions, additional waiting periods, or higher premiums.

You do not have to be stuck with an insurance product that doesn’t help you. Go online to find the right health cover for yourself by comparing all your options, and initiate the porting of your policy.

(The writer is CEO, BankBazaar.com)

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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