Insurance

What Is Health Insurance Portability?

Health insurance portability allows policyholders to switch to a new insurance company while retaining the credits gained for continuity and other benefits from the previous insurance company. This facility was introduced to the Indian market on October 1, 2011. Let us take a look at how exactly the procedure works.

Health insurance portability allows policyholders to switch to a new insurer while retaining the credits gained for continuity.

For example, you have a health insurance policy with Company A, and you are dissatisfied with the service provided. You can now shift to Company B and retain the advantages which Company A offered you, such as cover for pre-existing diseases and time-bound exclusions. Before health insurance portability came into force, shifting to a new insurer would mean losing all the continuity benefits you enjoyed as a policy holder of Company A and starting as a new policy holder all over again. The introduction of health insurance portability has come as a shot in the arm for the consumer.

However, there are some conditions governing this portability. Switching only for the sake of saving the premium amount is not advisable. It is important to have a clear understanding of the new benefits that await a customer in Company B. Also,companies allow portability only in case of individual policies. Therefore, an insured person who is part of a family insurance policy will need to switch to an individual policy in Company B before applying for porting for the entire group/family after one year. Moreover,to avail of portability benefits, the customer must apply for a switch to company B at least 45 days before his policy with Company A expires.

Disclaimer:

This article (“Article”) is licensed to or is the property of Religare Corporate Services Limited (“RCSL”, which would mean to include its group companies, wherever applicable). This Article should not be reproduced or redistributed to any person or in any form in whole or in part without prior and explicit written consent of RCSL. This Article reflects the views of the author or content provider, and RCSL disclaims all liability, whatsoever, arising out of the substance or contents of this Article or in connection thereto, including any matter relating to infringement of intellectual property rights. This Article is purely for the purpose of public awareness and education and any reference to any financial product should not be construed as an offer or solicitation of an offer to buy or sell any securities, financial instruments or insurance. RCSL does not guarantee the accuracy or completeness of the information contained herein and there can be errors both typographical and in content. The Article may be referred only as a general guide and not as the ultimate source of the subject matter discussed. The Article must not be relied upon for taking personal, medical, legal or financial decisions and an appropriate professional must be consulted for specific advice tailored to specific situations. RCSL and any persons connected thereto do not accept any liability arising from the use of this Article. This disclaimer forms a part of, and should be read in consonance with, the Terms and Conditions of this site.

Copyright 2012 Religare. All rights reserved. Trademarks are the property of their respective owners.

This site is best viewed with Internet Explorer 7.0 or higher; Firefox 2.0 or higher.