What goes into porting a health insurance plan? Everything you need to know | The Financial Express

What goes into porting a health insurance plan? Everything you need to know

Health Insurance porting: If you wish to port your policy, you are required to apply for the same at least 45 days before the lapse of the current plan.

What goes into porting a health insurance plan? Everything you need to know
While porting is a feasible option, consumers should use this only there is a real need for portability.

Poor policy features and services from an insurer often force a policyholder to think of porting to another insurance provider. There are several reasons for which a policyholder generally opts for porting, including better features, dissatisfaction with the current insurer, premium rates and so on. A policyholder can consider switching between insurers at the time of renewal. If you are planning to do so, here are some important points to keep in mind.

Only indemnity plans can be ported

“If you’re planning to port your health insurance plan from one insurer to another, ensure that you have an indemnity cover. Only indemnity plans can be ported at the time of renewal and benefits such as no-claim bonus can be transferred at the time of porting. Initial waiting period and waiting period on pre-existing diseases is also credited at the time of porting,” says Vivek Chaturvedi, CMO and Head of Direct Sales, Go Digit General Insurance.

For example, if you port your policy after four years and the new policy has a waiting period of three years, then no waiting period clause will be applied on the new policy since you have already served this period on the existing plan.

Benefits can be transferred up to sum assured

Experts say that benefits can be transferred only up to the sum insured opted on the existing health plan. “If your existing plan has a sum insured of Rs 5 lakh and while porting you opt for a higher sum insured, say Rs 10 lakh, then the transfer benefits will apply till the Rs 5 lakh sum insured limit,” says Chaturvedi.

Also Read: Is your health insurance plan in line with your current lifestyle?

How and when to apply for porting

If you wish to port your policy, you are required to apply for the same at least 45 days before the lapse of the current plan. For porting to another insurer, you will have to fill a portability form and within 15 days, the insurer will either accept or reject your request. If your request gets rejected, you may choose to renew your existing plan or buy a new policy from a different insurer.

Experts say that porting of health insurance policies is quite simple if a few things are kept in mind.

“One needs to know that the portability of health insurance policies is allowed only at the time of renewal. Health insurance policies of any type, be it individual or floater, can be ported from an existing insurer to similar health policies of another insurer. Benefits like a waiting period and no claim bonus can be continued even after porting the health insurance policy depending on the company one wishes to port into. Claims pertaining to previous insurance policies should be shared with the port in company. In retail policy, if one wishes to port, the person needs to apply at least 45 days before the existing policy expires,” says Indraneel Chatterjee, Co-Founder, RenewBuy

Advantages of porting health insurance plan

  1. Policyholders get an option to upgrade their product for better features and service
  2. Insurers may also give the option to combine the no-claim bonus and sum insured at the time of porting, allowing policyholders to enjoy the benefits of a higher sum insured
  3. Policyholders may get better features at competitive premium rates

Disadvantages of porting health insurance plan

  1. Policyholders can apply for porting only at the time of renewal of the existing policy
  2. It could result in an increase in premiums
  3. If you choose to port from group plans to individual plans, certain benefits that were offered in the group plan may be lost.

Portability allows customization

Along with the flexibility and freedom of transferring the insurance policy to another insurance company, insurance portability also allows customization. A cumulative bonus too can be transferred from the existing insurer to the new insurer in the form of a coverage amount increase, without any additional premium for the same.

Also Read: How health top-up plans help you prepare for medical emergencies

When not to go for porting

While porting is a feasible option, consumers should use this only if there is a real need for portability. It is important to make a cautious assessment as underwriting rules, policy exclusions, and terms and conditions vary amongst health insurance companies. Additionally, the policyholder needs to understand the new terms and conditions, which come with the newly ported insurance policy.

“The best way to know whether one should go ahead with the portability option, is to check with digitally enabled trustworthy insurance advisors, who can guide consumers with the dos and don’ts of insurance portability and can offer multiple options from the plethora of insurance companies and relevant policies,” says Chatterjee.

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First published on: 28-10-2022 at 03:24:34 pm
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