Similar to the bank account and the mobile number portability, the health insurance portability is an option provided to you by the health insurance provider. You can easily carry forward the benefits from your old health insurance account to the new one. There are various health insurance providers who are fulfilling the health requirements of the millions of people. But sometimes, the common people can be dissatisfied with their current health insurance policy. They may prefer some other health insurance policy from another company and want to switch to them. IRDA has therefore introduced the new concept of the health insurance portability.
At What Time You Should Port With A Different Health Insurance Provider?
When you are not satisfied with your current health insurance plan, you may move on to the other company. If you can keep some important points in mind, you can easily decide when to go for the portability option.
Extra Coverage: Your current health insurance provider may not offer a sufficient amount of coverage for any specific issues. It is the high time when you should move on to the new health insurance company for the additional coverage.
Hidden Rules: Try to look for the transparency when you are selecting your health insurance providers. Hidden clauses can become a major issue when you want to change your provider. You must shift to a particular health insurance provider who is transparent in nature with no hidden clauses.
Disappointed Service: If your health insurance provider is not fulfilling your expectations, you should think of shifting your service provider. It is of no point in holding on to the insurance provider if they cannot provide assurance of quality.
Specialized Provider: You may be associated with a general insurance company. So you can move to a specialized service by changing your health insurance provider.
Better Offers: When you are paying extraordinarily for the services which can be easily availed in cheaper rates, you can simply change the provider.
Slow Claim Settlements: If your current health insurance provider is offering slow claim settlements, you can surely go for the health insurance portability.
Benefits Of Health Insurance Portability:
Low Premiums: Some companies may be offering lower premiums with the existing benefits, which provide the policyholders an opportunity to save money.
Personalized Policy: The portability of the health insurance providers can be allowed for customizing according the health requirements of the policy holders. If the lifestyle changes during the policy period, like any additional cover required or some new nominees required to be added, then the portability option can be very helpful.
Transparency: The health insurance portability can allow policyholders for moving to a new plan where transparency can be observed.
Time Bound Exclusions Absent: As time bound exclusions are not present, the policyholders are not required to worry about this when portability occurs.
New Sum Insured: After the health insurance portability, the current sum insured is added to the accrued bonus for obtaining a new sum insured. During the portability, the no claim bonus can also be added to the sum insured.
Fast Claim Settlement: Some companies may settle the claim in a very slow manner. The portability can allow the option for moving from one company to the other for faster settlements.
Continuation of Benefits: Even after the portability process, you will enjoy the benefits of the old policy and it will be forwarded to the new policy.
Bonus: If there remains any bonus amount with your existing policy, it will smoothly be added with the new policy after the portability process. For example, if an individual policyholder earns a bonus of Rs.15000 with the existing policy and after the portability, the bonus will be clubbed with the sum insured.
Drawbacks Of The Health Insurance Portability :
High Premiums: Sometimes for the additional benefits, additional premiums are added after the portability.
Loss Of Benefits: If the policyholders are moving from the group insurance or the family floater plans to the single health insurance policy, they may suffer from some loss of benefits, compared with the current insurance policy.
Time Factor: Only when the policy is due for renewal, you can opt for the portability option at that particular time. You cannot go for portability in any time you want during the middle of the policy period.
Process Of Performing The Health Insurance Portability :
*At first, the policyholder can apply for the portability option, if all the premiums of the current policy have been paid on time devoid of any breaks. The policyholder will have to apply at least 45 days before the renewal date of the current policy.
*The required documents will have to be submitted with the application form in the new insurance company.
*Within 7 days, the new company will accumulate data about the medical history of the policy holder and the benefits occurred by the existing benefits.
*Depending upon your history and the claim records, your application can either get accepted or rejected.
*If finally your proposal has been accepted, all the existing benefits will be transferred to the new plan.
Buying a portability option is similar to buying a new policy. Before opting for this particular option, you must check whether the new policy will be able to fulfill your health requirements or not.