Health Insurance Portability: Do you feel trapped within your existing medical plan? Revamping Health insurance portfolio through Portability in 2018

If you finding your existing health insurance plan is quite overpriced or find it quite not suitable to your current requirement and still don’t want to get want to away with the benefits which you enjoy with the existing plan, portability seems to be the most feasible solution for it.  Though IRDA came with a regulatory change regarding it back in 2012 but still a lot of policyholders don’t have clear understanding how to look into portability and how one make best use of this regulatory benefits to plan for better health insurance.

Going by the regulatory definition, IRDA came with this change to protect the interest of the policyholders. In days of  Pre-regulatory changes if a policyholders want to get away of the old policy he/she needs to sacrifice the benefits associated like waiting period for certain health conditions lying in the old plan .There was also no obligation on the part of the new insurer to offer the same sum assured as the old policy. Which means if you had waiting period of 2 years for certain critical illnesses in your old policy and you had already served one year of it . In a pre-regulatory scenario if want you move to a  new Health insurance plan which has a similar or more waiting period terms then what you have served in the old plan was not taken into consideration. So typically you investment made in the old plan becomes a dead.

With the coming of the portability regulation, IRDA’s focus was to protect the insured against all these as discussed above. Going by the definition of portability, health insurance portability is considered under the following conditions.

  1. If a policyholder wants to switch from one plan of an insurer to another favorable plan of the same insurer, the clause of portability comes into effect.
  2. The other scenario is when the portability clause comes into effect is when a policyholder wants switch from an old plan of any insurer to a new suitable health insurance plan of a new insurer.
  3. The portability also comes into effect when a policyholders looks at switching between a individual plans to family plans.

With medical costs rising every year and your health and financial conditions transform every five year, health insurance plan portability can be used as an effective tool to strategically plan one’s personal finance in a timely manner.

 

Things to remember while porting your health insurance plan:

  1. Always remember that as per guideline your new insurer or your new plan contract need to honor the benefits of waiting period passed on from the old plan.
  2. Don’t forget to carry forward the benefits of no claim bonus lying with your old plan. Every insurer is bound to give you a discount on premium at the time of renewal if you had a claim free year proceeding the year of renewal.
  3. If you are seriously looking for portability the minimum period for applying for the same is 60 to 45 days before the date of renewal of the old plan. The minimum days depend a lot on the insurer of the old policy. You can any ways continue your policy without any break and the insurer can’t penalize you for that if the porting is under process because there is always a grace period of 30 days

But one thing to remember , though your new insurer or the new policy contract has to mandatorily comply with giving your at least the same amount of cover which you enjoyed with the old plan but there is no rule regarding complying to the earlier premium. Every insurer looks risks and evaluates the same in a different way so there can be a premium price differential. Another thing that one should keep into mind that insurance generally accepts portability request for young policyholders compared to old.

 

Now to wrap up all this if you are seriously looking at revamping your health insurance portfolio in 2018, start with comparing of other health insurance plans online way in advance and do notify your insurer way to in advance as per the minimum allotted time by the regulation.

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