What is Health Insurance Portability & How it Works?

Even after meticulous care and research in choosing the best health insurance policy, your choice may prove inadequate as your circumstances change. This disparity between anticipated needs and evolving circumstances can leave you dissatisfied.

Enter health insurance portability, a concept that allows individuals to seamlessly transfer their policies between insurance providers without sacrificing crucial benefits. 

Keep on reading to understand what health insurance portability means, how it works, the benefits it offers, and important factors you need to keep in mind to ensure you make an informed decision, safeguarding health as well as financial well-being. 

What is Health Insurance Portability?

Health insurance portability empowers you as a policyholder to transfer your existing health insurance policy from one insurer to another or migrate from one plan to another within the same insurance company without losing the existing benefits. 

This provision gives you flexibility and choice while maintaining continuity of coverage and enjoying enhanced benefits based on your evolving needs.

How To Port Your Health Insurance Policy?

The process of applying for health insurance portability is easy and you just need to follow the steps mentioned below. 

Step 1: Inform your insurance provider at least 45-60 days and request a transfer before the expiration of your current policy. Specify the name of the new insurance company you want to transfer the policy.

Step 2: The new insurer will send you paperwork and inform you about the policy options available as well as the premiums and conditions of coverage. They will also send portability forms for you to complete.

Step 3: Choose the plan and the coverage you want. Submit all required documentation. 

Step 4: Your new insurer will evaluate important details like prior claims history and medical records. They can contact your previous insurance company to get the necessary information or verify necessary details through IRDAI’s website. 

Step 5: Based on the information they receive; your new insurance company will decide whether they should accept the portability request or not. They must confirm their decision to you within 15 days. 

Key Features and Benefits of Health Insurance Portability

The key features of health insurance portability can offer a lot of benefits to dissatisfied policyholders. The top benefits are given below.

  1. Enhanced Service Quality: When you transition to an insurance provider known for superior service, you receive an improved service experience, spanning policy purchase to claim settlement.
  2. Customised Coverage: Portability allows you to choose a plan that fits your health needs and current lifestyle. You can also increase the sum insured and extend policy coverage, subject to approval from the new insurer.
  3. Continuity of Benefits: Health insurance portability, ensures that you carry forward the waiting period benefits and other features from your previous policy.
  4. Potential Cost Reductions: When you decide to choose a new insurance company, they can offer you competitive premiums and added benefits to get your business. Portability allows you to take advantage of these offerings and save some money.
  5. Grace Period Consideration: While your health insurance is under process, an additional grace period is provided. The premium is calculated based on the duration your old policy was active.
  6. Waiting Period Consideration: You do not have to undergo the waiting period again if it has already been served under your current health insurance policy. 
  7. Charge-free Service: Health insurance portability service is offered without any charges. Insurers cannot impose a fee for providing this facility.

Things to Consider Before Availing Health Insurance Portability

Before you port your health insurance policy, consider the factors provided below and then move forward with your decision. 

  1. Types of Policies Available: Portability is possible for individual health, family floater, or group insurance policies, depending on the terms and conditions mentioned in the plan. You can also port your policy within the same insurer.
  2. Time Frame: Portability is applicable only at the time of renewal.
  3. Regular Renewal of Existing Health Insurance: The portability option is applicable when the existing health insurance plan is renewed regularly without any breaks. 
  4. Health Insurance Portability Intimation Period: The new as well as current insurance providers must be notified at least 45 days before the actual renewal date. 
  5. Sum Insured: The new insurer must provide a minimum sum insured equal to your current policy’s coverage. Any increase in the sum insured is at the new insurer’s discretion. 
  6. Premium Charges:  These apply to the new insurer’s terms and conditions and are subject to change.

Health insurance portability is all about making your health insurance experience better, more flexible, and more in line with what you need. It epitomises empowerment and flexibility. When you opt for this feature, you can find the best health insurance policy in India, that matches your current requirements and budget. 

It’s like being able to tailor your healthcare plan to fit you just right!