There are hundreds of health insurance plans in the market. Each plan has a different set of coverage features and is, therefore, priced differently. Moreover, health insurance companies also compete with each other and provide various value added services with their health insurance plans.

These services and additional features add unique benefits to health insurance plans. Many of you, therefore, might find better alternatives to your existing health insurance plan. What can you do then? Can you switch to a better plan?

Yes you can. The Insurance Regulatory and Development Authority (IRDA) permits health insurance portability. Do you know what portability of health insurance is?

What is health insurance portability?

Portability means the ability to change to another product while retaining some part of the earlier one. When you port your mobile number you retain your existing number but change to another service provider. In case of a health insurance policy, portability allows you to change to a different plan of the same insurer or to another plan offered by another insurer. The waiting period for pre-existing diseases which have already lapsed in the old plan are carried forward to the new policy.

Moreover, any other waiting period applicable in the health plan which you have already waited out would be credited to the new plan. Thus, on porting, your renewal benefits are not lost. They are simply credited to the new policy.

Reasons for porting your policy

Portability should be resorted to if –

• Your existing insurance company gives you bad services

• The claim process of your existing policy is cumbersome

• Your policy has limited coverage features

• The premium is unreasonably high

• You find a more comprehensive plan at lower premium rates

• Your existing plan has various limits and sub-limits and you want a more inclusive coverage

Besides these reasons, there might be other justifiable reasons which make you port your health insurance policy.

Portability requirements

IRDA mandates all health insurance companies to provide the option of portability in their health insurance plans. There are, however, some conditions on porting your health plan which are as follows –

• Porting is allowed only when your existing health insurance plan is up for renewal. You cannot port the policy mid-way during the policy tenure

• To port the policy you should inform your existing insurance company and make a porting request.This request should be submitted at least 45 days before the policy renewal date.

• Porting is allowed for the entire existing sum insured. The new policy would, therefore, have a minimal coverage amount equal to your old policy. You can increase the coverage if you want when you port.

So, you just have to fill out a portability form and submit it with your existing insurer at least 45 days before the renewal date. The insurance company would then allow you to port your policy to a new company. You would have to inform the old company of the new company and the plan to which you wish to port your policy.

Points to remember

When you port, you should remember the following points –

• You can port both individual and family floater health plans.

• Porting is allowed between the same kinds of health insurance plans. For instance, you can port from one indemnity health plan to another or from one critical illness plan to another. You cannot port from an indemnity health plan to a critical illness one.

• The accumulated No Claim Bonus of the older policy is usually added to the sum insured and is then ported to another policy. However, the acceptance of the accumulated no claim bonus is entirely at the new insurer’s discretion. It is not compulsory like the waiting period for illnesses.

• Porting is always free of cost. Your old insurance company or the new one cannot demand any charge for porting your health insurance policy.

• Your existing policy should have a track record of continuous renewals so that the porting request is not rejected by the new insurance company

• Porting should be done only if you are sure that the new policy offers you better coverage features at lower premiums. You should be careful when porting your policy. Compare different health plans and find a better plan than your existing one. Only then should you Port.
  

Porting gives you the benefit of availing a better cover at lower premium rates. You can also get easier claim settlements from another insurance company and better service promises. So, understand the conditions of porting and keep the important points in mind before you port.