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Importance of Health Insurance Portability in India

We all live in a globalized world that offers thousands of choices. Whether you are buying a pen at your local market or purchasing a car, there are always many options available in front of you. This also holds true when it comes to health insurance policies.

In India, people have several options when it comes to purchasing a health insurance policy. There is also the option of health insurance portability. Health insurance portability and accountability become very important when policyholders do not want to stay stuck to an insurance provider. This situation often arises when the policyholder is dissatisfied with the services of the insurance provider.

The Insurance Regulatory and Development Authority of India (IRDA) has provided the option of health insurance portability in India to all citizens. There are several health insurance portability rules and IRDA health insurance portability guidelines that one should be aware of. Today, we’ll help you with the same.

Understanding Health Insurance Policy Portability from July 1

Health insurance policy portability is the manner in which a health insurance policyholder can switch the current insurance policy provider to a different insurance provider. The biggest portability benefit of health insurance policies is that it allows an individual to opt for higher services and products.

Top 5 Reasons for Health Insurance Portability

To streamline the process of portability, there are some IRDA guidelines for health insurance portability that have been rolled out. And before we learn about those guidelines, it is important to understand why the need for health insurance portability rules in India and the act were felt. Some of these reasons are:

  1. Quality of Service: If an individual is feeling as if the insurance provider is not fulfilling the promises that were made at the time of purchase of the policy, then he or she can choose to port to a new insurance provider. Some insurance providers also provide portability of group health insurance policies.
  2. Enhanced Health Insurance Portability Benefits: There are several insurance providers in the market that provide better services and advantages to their customers. If you find one such provider, then there is no point in sticking to your old insurance provider. You can simply get better benefits by opting for the feature of health insurance portability IRDA.
  3. Expenses: One of the potential disadvantages of health insurance portability can be that you have to pay a higher premium to the new insurance provider. However, what if that is not the case with you? What if you have been able to find an insurance provider that provides the same policy at a lower premium rate? In that case,  you can make the switch to the new insurance provider. This will also allow you to manage your finances in a better manner.
  4. Relocation: When individuals move to a new place, the first question that they have is ‘is health insurance portable in India.’ This is a smart question to ask as you should be aware of your options in terms of your health insurance policies. Health insurance policies are portable in India. This is why you need to take a closer look at the insurance provider that provides better health insurance services in the new location where you have decided to move to.
  5. Process of Claim Settlement: It is necessary for any insurance provider to have an efficient claim settlement process. And if you are not satisfied with the claim settlement process of your current insurance provider, then you can always decide to make a switch. These are some of the reasons why IRDA felt it was important to introduce the portability feature to the insurance sector in India.


Top 3 Benefits of Health Insurance Portability

Now that we are familiar with the reasons behind the existence of health insurance portability, the next step is to have a grasp on the importance of health insurance portability. Some benefits of portability are:

  1. Customization: When it comes to porting to a new insurance provider, it becomes somewhat easier to customize the options and advantages that one wants in the policy. Individuals can choose to add nominees or opt for more advantages.
  2. Continuity Benefits: When you change your existing health insurance provider, then that does not mean that you will also have to lose the benefits that you are currently receiving from your health insurance. Portability ensures that you will continue to receive the benefits that you like and need.
  3. New Sum Insured Value: According to IRDA, a new insurance provider has to insure the customer with at least as much as the sum insured value that was being offered by the previous insurance provider. However, in most cases, there is an additional portability bonus that is provided to the insured by the insurance provider. This ensures that there is a new and better sum insured value at the time of portability.


The Conditions for Portability

There are some conditions for portability that must be met. These conditions are:

  • The coverage can be ported solely at the juncture of renewal. The new insurance coverage interval can be with the new insurance provider
  • All the opposite phrases of the new insurance provider can be at the discretion of the new company. The only exception to this is the ready interval credit score
  • The course of portability must be started by the policyholder at least 45 days before the time of renewal. To initiate this course, one has to write to the current supplier regarding requesting a shift. One needs to specify the brand new insurance provider that one wants to shift to and ensure that the coverage is renewed without any break. It should be noted that a 30 days grace interval is also provided during the process of portability.


If you satisfy these conditions, then you can successfully port your health insurance policy to a brand new insurance provider!

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