Nine questions to ask before porting your health insurance

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Looking for an insurer with a better network of hospitals in your area? You need not buy a new plan for your requirements. Instead of surrendering a plan bought earlier and then buying a new one, you can port your plan to another. Insurance regulator IRDAI has provisions in place for policyholders to switch from one insurer to another without losing the benefits accumulated over the holding period.

From an individual policy to a family floater, the portability of all non-life plans are facilitated by insurance companies. If you are not satisfied with the services of your current insurer or are unable to get additional coverage due to some underwriting limitations then the right decision is to switch. Portability is allowed only in cases where the policy was continued without any breaks.

IRDAI states, “In the past, such a move resulted in you losing the benefits like the waiting period for covering pre-existing diseases. IRDA has laid down that your new insurer shall allow for credit gained by the insured for pre-existing condition(s) in terms of the waiting period. This applies not only when you move from one insurer to another but also from one plan to another with the same insurer.”

Before you jump ship, you need to ask some pertinent questions to ensure that the trouble is worthwhile. Nisha Sanghavi, co-founder of ProMore, suggests that one must look at the features from co-payment to discounts and annual benefits like free health check-ups, network hospitals, among others.

Here are some questions you need to ask before porting your policy –

1. Why are you switching?

One has to be clear on why they are making the switch. This is to ensure that you know which benefits to look for when you zero in on the next plan. This could be for increased cover, better services, a wider network of hospitals.

2. When is portability allowed?

The policyholder is allowed portability only at the juncture of renewal so that the new insurance period is with the new company. At least 45 days before the date of renewal, one can request a shift specifying which policy you are moving to.

3. Will the premium rise?

The premium and other terms of the new policy are at the discretion of the new insurance company you are switching to. If you are opting for more sum insured and features, your premium is set to rise.

4. Can I transfer my no-claim bonus benefits?

You do get an option of portability of NCB. This means the NCB you acquired for every claim-free year is transferrable to another policy with the same or different insurance. Make sure to read the terms and conditions mentioned in the policy.

5. How long will it take for the process?

There is a grace period of 30 days for the process. Once the policyholder submits the application for portability, the existing insurer must provide details like claim history and medical records within 7 days. IRDAI has created a web-based facility to get and maintain data about all health insurance policies issued so that it can be accessed by the new company to which a policyholder wishes to port his policy. Once the new insurer gets the details, they have to take a decision within 15 days.

6. Will the terms and conditions remain the same in the new plan?

The terms and conditions differ from insurer to insurer, even when you are porting. One must weigh in on these before making the final call.

7. Will the waiting period remain the same?

While portability does offer benefits on the waiting period, one must note that if the waiting period for a said pre-existing disease is longer in the new policy as against the previous plan, the policyholder may have to wait for coverage for it.

8. What features to check in the new plan?

While choosing a plan one should check hospital network, annual benefits like health checkups, co-payment clause, new sum insured, wellness benefits for discounts on renewal, cashless claims, domiciliary cover among others.

9. Will there be extra charges for porting?

According to IRDAI, insurance companies cannot charge for porting, but one will have to pay additional charges for other services.