With the growing demand for health insurance, there has also been a hike in number of insurance companies. If you are not satisfied with the plans you had currently opted for and want to switch to new health insurance providers; policy portability policy allows you to choose a different insurer without losing out on the benefits assembled from the current insurer.
Health insurance portability is a policy where one can port a current health insurance policy to a different insurance company. Porting can be done when one faces poor services, needs an extra cover, or any other reason.
The concept of health insurance portability was introduced by Insurance Regulatory and Development Authority in 2011. Here, an individual policyholder can switch health insurance from one company to another or from one plan to another within the same insurance company. However, in a group health insurance policy, you can only port health insurance within the same insurance company.
When should you port?
When to port insurance company might seem confusing sometimes, it can be simplified if specific points are kept in mind.
Poor service from your current health insurance provider. It is time to port if your health insurance provider does not give you the promised service quality.
Hidden clauses – It might turn out to be the primary concern during emergencies, and it would be better to shift to a provider who is transparent which has no hidden clauses.
Additional Cover – If your health insurance provider does not cover your sufficient needs, which are of concern to you, you should switch over to the service provider which covers all your needs.
If you are facing untimely or delayed reimbursement of medical bills.
There is a better product available in the market which offers better benefits than your existing health insurance plan.
Health insurance portability guidelines
To ensure a smooth portability policy, you must convey your intent to the new insurance company at least 45 days before the next policy renewal. The new insurer has the liability for rejecting your application requesting for portability if not informed before 45 days.
Individual or family policies can be ported.
You cannot port your policies at any time. Health insurance portability is permitted only at the renewal time of the current insurance policy.
Insurers should have acknowledged applications for portability within three days.
Policyholders can renew their policies without any break. If a discontinuity in the policy occurs due to an insurer’s delays, it will not be treated as discontinuity, and portability can be continued.
Policyholders can port their policies from any general or specialized insurance company to any general or specialized insurance company.
For a policyholder to become qualified for porting, he must not skip the premium dues, and there must not be any gap in the existing policy.
On submitting the application form with all necessary documents, the new insurer is likely to respond with 15 days. If the company does not respond within 15 days, the company loses the right to reject the application and has to accept it anyway.