Since 2011, individuals have been able to move their health insurance coverage without incurring any further costs if they are displeased with their services. It may be done by applying for porting with the new insurer 45-60 days before the previous policy's renewal date. You can transfer a family or business health insurance policy to another individual or family.
When it comes to porting, many insurers do not need a medical exam or the re-filling of documents. You may, however, be required to make a statement of good health and new disclosures about pre-existing medical issues.
Medical underwriting is based on a person's current health state. So, to avoid claims rejection later, be sure you're making accurate medical disclosures.
The new insurer contacts your previous insurer after receiving your porting request to obtain further information about your medical and claims history.
The new insurer normally informs you whether it accepts or rejects your porting request within 15 days. According to laws, it must approve your request within 15 days.
What is the mechanism behind it?
A new insurer must offer an amount guaranteed that is at least equal to that of the previous policy. The insured, on the other hand, has the option of requesting a higher sum assured at the time of porting.
In addition, the new insurer must provide continuity benefits for pre-existing condition waiting periods. For example, if you purchased a health policy three years ago for Rs 5 lakh with a total assured of Rs 5 lakh and a four-year waiting term for a pre-existing ailment, the new policy will only have a one-year waiting period.
If you choose a bigger sum promised of Rs 8 lakh under the new policy, the incremental sum assured (of Rs 3 lakh) would only come in after a four-year waiting period.
While the previous policy's No-Claim Bonus (NCB) is carried over to the new policy, the premiums do not have to be the same. It is totally up to the new insurer's discretion, depending on their underwriting risk calculations. They could, for example, demand a co-pay or loading charge at the time of porting.
When should you switch your insurance policy?
Premiums that are less expensive
Lower premiums can save you a lot of money in the long run. However, read the tiny print to be sure you're comparing apples to apples. While several health insurance policies may appear to be identical, sub-limits and exclusions can have a significant impact on cost.
Product characteristics that are better
If the new insurance policy's benefits appeal to you, you should switch if they contain some of the aspects that are important to your family. A hospital with zero or greater sub-limits on room rents, a large network of hospitals, or a superior restore benefit are examples of these attributes. Some insurance may additionally include coverage for a specific condition that affects a family member.
Inadequate services
If you've had bad service or have difficulties with transparency, like as a hidden clause, you should switch insurers. Ascertain that the new insurer has a higher claim-to-settlement ratio.
a second cover
Some insurers may refuse to underwrite above a certain level, such as Rs 10 lakh in total insured. Or have misgivings about doing so in specific areas or economic levels, whilst others do not.
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