Health insurance portability allows the policyholders to transfer their existing health insurance policies to a new health insurance provider. It ensures that the policyholders do not lose any benefits accumulated over a period of consecutive renewals when switching to a new health insurance company. A person can port his/her health insurance policy to another insurance company at the time of renewals.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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Portability in health insurance refers to the process of switching your existing health insurance policy to a new plan or health insurance company without losing the accrued benefits like No Claim Bonus (NCB), waiting period credit, free medical check-ups, etc. It provides the customers with the freedom to switch to a better health insurance provider in case they are unhappy with their existing policy or insurance company.
Every policyholder has the right to portability provided the previous health insurance policy was renewed without any breaks. In order to avail this facility, the policyholder has to apply to the insurance company, where he/she wishes to port his/her health policy, at least 45 days before the premium renewal date of the existing policy. If the policyholder fails to do so, it is up to the insurer to consider the application for portability.
Take a look at some of the common reasons why a policyholder may opt for health insurance portability:
The IRDAI has laid down certain rules for health insurance portability to be followed by both policyholders and insurance companies. Let’s take a look at the various health insurance portability rules below:
Categories |
Health Insurance Portability Rules |
Types of Health Insurance Policies Permitted |
Only similar health policies can be ported. For instance, a policyholder can port from a reimbursement health plan to another reimbursement plan or from one top-up plan to another top-up insurance plan. |
Company Type |
Policyholders can port policies from any general or specialised insurance company to another specialised or general insurance company. |
Time to Port a Policy |
Health insurance portability is allowed during the current policy renewal time only. It is not possible in-between the policy period. |
Existing Policy Renewal |
It is imperative for policyholders to renew their health policies without any breaks to avail the portability feature. |
Portability Intimation |
People who wish to opt for health insurance portability must notify their decision to their current insurance company in writing, and mention the company they wish to port to. They should also file a portability request to the new insurance company at least 45 days before their existing policy is due for renewal. |
Acknowledgement |
Health insurance companies have to acknowledge a portability application within three days of receiving it. |
Porting Charges |
Health insurance portability does not involve any porting charges. |
Premiums |
Insurers are free to levy premiums as per their specific underwriting norms and hence, premiums may not remain the same even for similar coverage. Moreover, people in the high-risk category like senior citizens may have to pay a higher premium after porting. |
Grace Period |
Applicants are allowed a 30-day grace period for policy renewal in case the porting is still under process or the new insurer’s decision is still pending. To avail this extended coverage, policyholders need to pay a pro-rata premium to their current insurer instead of the annual premium. |
Sum Insured |
Policyholders can opt to increase their minimum sum insured amount when they port. As per the IRDAI’s guidelines, new insurers have to provide a minimum sum insured equal to the old policy’s original sum insured. |
Pre-existing Diseases Waiting Period |
If a person ports to a new policy with an increased pre-existing diseases waiting period, then the entire waiting period has to be served minus the period already served under the previous policy. |
Shifting Plans Within the Same Company |
Policyholders can port from one health insurance plan to another plan within the same company. |
As per the IRDAI’s guidelines, health insurance companies must accept portability requests at policy renewal or the end of the specified exit age by offering suitable credits for all previous policy years, provided the policy is continued without any breaks.
Porting a health insurance plan comes with the following benefits:
One of the biggest advantages of porting a health insurance policy is that it lets the policyholder enjoy the continuity benefits of the existing policy. This means that the policyholder does not lose the accumulated benefits on changing their health insurance policy or insurer.
For instance, if the policyholder has an accumulated NCB of 30% under the existing policy, the same will be available if he/she decides to port the policy to another insurance company.
Another important benefit is that the waiting period covered under the existing health policy will be carried forward to the new policy after portability. For example, suppose joint replacement surgery was not included in the coverage for the first 2 policy tenures under the previous policy.
But as per the new policy offered by the new insurance provider, the waiting period for this surgery is 3 years. In this case, 2 years of waiting period credit from the previous policy will be deducted and the applicable waiting period shall be of 1 year only.
Health insurance portability can also help the policyholder to switch to a health plan available for a lower premium. This is especially helpful for people whose premiums end up increasing after they raise a claim under their existing policy. But with the portability feature, they can port to a policy that offers the same level of coverage for a more affordable premium.
A policyholder can also port to a new health insurance company if the services offered by the existing insurer were not satisfactory. For example, if the existing insurance company has a complicated claim process or has poor customer service, the policyholder can port the policy to another insurer with an easier claim process and better customer care team.
Take a look at the process of porting a health insurance policy below:
Given below are the list of documents required for health insurance portability:
While the IRDAI has empowered all policyholders with the right of portability, it has also given health insurance companies the right to reject any portability requests. As a result, all requests for portability are treated as new and are subject to scrutiny by the underwriter.
When a health insurance company receives a portability request, the underwriter assesses the risk exposure in order to determine the premium that needs to be charged. The insurer can reject the proposal if it is deemed unfavourable. In that case, the policyholder will have no other option but to continue with the existing insurance provider.
IRDAI has given insurance companies the authority to reject a portability application if it is not in line with the company’s terms, conditions, and policies. Further, portability applications may also be rejected on the grounds of:
Here are some of the things that a person should consider before applying for health insurance portability:
People covered under group health insurance policies or family floater policies may port to an individual health cover. However, to switch to another insurer, they first need to switch to an individual health plan offered by their current insurer. Switching to a new insurer of the policyholder’s choice is permitted only after one year.
Before making the final switch, it is recommended to go through the features, coverage and benefits offered by the new policy. Also, understand the differences between the two policies in terms of sum insured slabs, premium, entry age restrictions, renewal limit, sub-limits, capping, waiting period, co-payment, hospital network, etc.
The following table shows the pros and cons of porting a health insurance policy. Take a look:
Pros of Health Insurance Portability |
Cons of Health Insurance Portability |
Portability allows the policyholders to change their health insurance policies as per their current health conditions/requirements and lifestyle changes. For instance, porting from a group health insurance plan to a family health plan. |
Portability can be opted for only when the health insurance policy is due for renewal and not at other times. |
With the portability feature, the existing sum insured is clubbed with any bonus accrued under the previous health policy to compute the new sum insured. The existing No Claim Bonus (NCB) is also added to the new sum insured. |
Policyholders can only port to similar kinds of health policies and not to different ones. For example, a top up plan cannot be ported to a critical illness insurance plan. |
Portability allows policyholders to switch to a health plan with lower premiums as different insurance companies usually offer existing coverage at lower premiums to evade competition. |
Sometimes, additional benefits can be offered at higher premiums under the new health policy. |
All benefits of the older policy remain in force even after portability. Also, portability can be opted for without worrying about time-bound exclusions like a waiting period. |
Policyholders who decide to move from group insurance policies to individual policies may lose some of the benefits included in the previous policy. |
Ans: Yes. You can transfer your existing health insurance policy to another company using the health insurance portability feature. However, portability is possible only at the time of existing policy renewal.
Ans: A policyholder can apply for portability of a health insurance policy at least 45- 60 days before the policy expiry date. However, the convenience of porting a policy may vary from one health insurance provider to another.
Ans: No. You do not have to pay any amount for porting your health insurance policy as portability does not involve any charges. You only need to pay the premium for the new health policy.
Ans: Yes. You can port your existing group health insurance policy to an individual health policy from another insurance company. But first, you need to convert your group health policy into an individual health insurance policy offered by your insurance company. After one year, you will be eligible to port the policy to an individual health plan offered by another company.
Ans: As per the IRDAI’s guidelines, a health insurance company must acknowledge a portability request within 3 days of receiving it. However, they need to either accept or reject a portability request within 15 days of receiving all the requested documents. In case of any delay, they will have to accept your portability request.
Ans: Yes. You can port a health insurance policy online by visiting the website of the new health insurance company.