We’ve all heard about cell phone number portability (the constant delays are another matter entirely!). Similarly, the Insurance Regulatory and Development Authority (IRDA) is currently working on an aggressive timeline for health insurance portability in India. In simple terms, portability of health insurance means that the policyholder can transfer the health insurance from one insurance company to another upon renewal without losing the accumulated benefits.
The basic idea is to enable the policyholder to maintain a constant minimum basic coverage across all insurance companies. Today, if you acquired a condition during the previous policy term, it will be treated as a pre-existing condition by the new insurer and therefore people (especially older people) find it very difficult to change their insurance company, even though they may be unhappy.
This is a boon for policyholders in India. This ensures that the Indian insurance company you are currently insured with cannot afford to take you for granted (regardless of what the customer service department would like you to believe, you are nothing but a source of income for the insurance company). !). It will also cause the insurance company to think twice before carelessly denying claims. The biggest advantage is that the policyholder is not tied to one insurance company and has an option if their existing insurance company may no longer want to cover their risk. This will also ensure that insurance companies introduce more cost-effective and customer-friendly systems so that their existing policyholders do not switch, which would result in a reduction in premiums.
Currently, most health insurance contracts are single-term contracts. In the event of damage, premiums are guaranteed in the form of a higher insured sum for the same premium or a premium reduction. However, if the policyholder wishes to transfer it to another company, the bonuses will not be transferred and the policyholder will pay the base interest rate. For seniors who purchased their original policy many years ago, the transition becomes even more difficult as insurance companies shy away from selling new policies to older people.
Some of the key issues such as data sharing, bonus transfer and two different policies are currently being clarified. According to senior officials, the basic product has already been developed by GIC and is now awaiting approval from IRDA. Health insurance portability in India will most likely be available for a sum insured of up to Rs 1 lakh or 2 lakh (we recommend 2 lakh). Since two health insurance companies are rarely identical, the GIC strives for a common minimum benefit that can be covered if you change health insurance company.
Cumulative bonuses from no-claims insurance will not be carried forward and the extended coverage will be treated as a new policy. With basic insurance there are no exclusions due to cooling periods or pre-existing illnesses. Although the portability of health insurance makes it difficult to customize health insurance policies, it’s a small price to pay for the freedom of knowing that health insurance can’t twist your arm when you’re at your weakest. The portability of health insurance also ensures that online comparisons can be made via websites such as: www.PolicyTiger.com will play an even greater role in the decision-making process.
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