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.


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