On Oct 2011, the insurance regulator IRDA came with a new of regulation for health insurance policy holders called Health Insurance portability which gave them more powers in their hand to enjoy full benefits from their policy who ever may be the insurer. Now if you are actually dissatisfied with your existing insurer or there is a new plan from your existing insurer or any different one which is better than the one you have you have, you always have an opportunity port your benefits to the new plan or with the new insurer. This is similar is quite similar to mobile number portability where you can actually stay with same number but you switch between different mobile operators.
As per definition given by the Insurance Regulatory and Development Authority of India:
“Portability means the right accorded to individual health insurance policy holders (which includes family cover) to transfer the credit gained by the insured in for pre-existing conditions and time bound exclusions if the policyholder chooses to switch from one insurer to another or from one plan to another plan of the same insurer, provided the previous policy has been maintained without any break”
Key facts about portability:
Before you port, you should be very clear with the fact that porting is not transferring your old policy with a new insurer but it is like a new policy without any waiting period clause. A policyholder should give a porting request with a new insurer at least 45 days before the date of the renewal of the existing policy with copies of Health Insurance Policy documents of the last 3 terms without which the insurer enjoys the full right to reject your request. The policy holders should also keep in mind that the existing policy shouldn’t have any break. A break in the policy means you should not be any situation where you have not been able to pay the premium by the time of renewal or with 30 days of grace period allowed in the policy.
On receipt of the portability request from you the new insurer has to respond within 15 days of the same otherwise it would be deemed to be accepted. Before making a porting request to equally judged the benefits of both existing and new so that you don’t make wrong decisions. Another thing that need to keep in mind that not only the insurer but the policyholders also need to adhere to time lines in furnishing required documents otherwise the insurer also enjoy the full right to reject your request at any point of time