Health insurance is a vital financial tool that safeguards you from unexpected medical expenses. However, your requirements may change over time, or your current insurer might not offer the services or benefits you expect. If you’re unsatisfied with your current policy, you don’t have to continue.
What Is Health Insurance Portability?
Health insurance portability allows you to transfer your existing health insurance policy from one insurer to another without losing benefits like waiting periods for pre-existing diseases and accumulated no-claim bonuses (NCB).
This facility, introduced by the Insurance Regulatory and Development Authority of India (IRDAI), ensures that policyholders are not locked into one insurer due to fear of losing their policy benefits.
Why Would You Want to Port Your Health Insurance?
There are several valid reasons why you may want to shift to a different insurance provider for your health insurance:
- Inadequate coverage: Your existing sum insured may not be sufficient anymore.
- Poor service: Delayed claim settlements or unsatisfactory customer support.
- High premiums: Better plans with lower premiums may be available.
- Better features: New insurers may offer additional benefits like wellness programs, cashless hospitals, and free health check-ups.
- Change in lifestyle: Marriage, children, or ageing parents may require a change in coverage.
Key Benefits of Porting Health Insurance
Porting gives you a chance to make your policy more aligned with your current healthcare needs. Some major advantages include:
- Retention of accrued benefits such as the no-claim bonus.
- Credit for waiting periods served under the old policy.
- Freedom to choose better plans without starting from scratch.
- Improved service quality, claim process, or network hospital coverage.
How Does Health Insurance Portability Work?
Switching your insurer might sound complicated, but the IRDAI has made the process seamless. Here’s how it works:
Step 1: Evaluate Your Needs
Before porting, re-assess your medical needs. Are you looking for a higher sum insured? Better hospital network? Maternity coverage? Use a health insurance calculator to estimate how much coverage you should ideally opt for based on your age, family size, lifestyle, and location.
Step 2: Apply for Portability
You must inform your existing insurer in writing at least 45 days before the policy renewal date. Simultaneously, you should apply to the new insurer with a portability request.
Step 3: Submit the Documents
You’ll need to provide:
- Portability application form
- Previous policy copies
- Claim history, if any
- Medical records (if required)
Step 4: Underwriting by the New Insurer
The new insurer has to accept or reject the application within 15 days. If they fail to do so, they are bound to accept your portability request.
Step 5: Issuance of New Policy
Once approved, the new insurer will issue a fresh policy that includes continuity benefits from your previous insurer. You can also opt for enhanced coverage, but benefits for the increased amount may be subject to fresh waiting periods.
What Gets Ported When You Switch?
Here’s what remains intact when you port your policy:
- Sum insured: Base sum insured plus no-claim bonus (if applicable).
- Waiting period credits: If you’ve already served the 2 or 4-year waiting period for pre-existing diseases, it continues with the new policy.
- Time-bound exclusions: These remain credited.
What does not get ported:
- Benefits specific to the old insurer (e.g., wellness points or discounts).
- Any fresh increase in sum insured may carry new waiting periods.
Points to Remember Before Porting Health Insurance
While porting offers flexibility, it is not always the best move unless you are fully aware of the terms. Here are key points to keep in mind:
- Eligibility: Only individual and family floater policies can be ported.
- Policy lapse: If your policy lapses before porting is complete, your portability request may be rejected.
- Medical underwriting: The new insurer may ask for medical tests, especially if you’re above a certain age.
- Premiums: Porting doesn’t guarantee a lower premium. Use a health insurance calculator to compare different plans and costs.
- Enhanced cover: If you choose higher cover or add-ons, new waiting periods may apply to those specific parts.
- Network hospitals: Always check whether your preferred hospitals are covered by the new insurer.
When is the Right Time to Port Your Health Policy?
Ideally, you should port your health insurance policy:
- At renewal: Porting is only allowed at the time of policy renewal.
- When unsatisfied: Poor service, lack of digital claim support, or delayed reimbursements can be reasons.
- After claim-free years: This gives you more bargaining power and acceptance chances.
- Before age increases significantly: After a certain age (usually 60+), insurers may impose stricter checks.
Using a Health Insurance Calculator: Why It’s Important
A health insurance calculator helps you compare premiums, features, and benefits across insurers. It also helps estimate the right sum insured for your family, depending on current medical inflation and healthcare needs.
You can input variables such as:
- Age and number of family members
- Pre-existing conditions
- Preferred add-ons (like maternity or OPD cover)
- Desired sum insured
Health insurance portability empowers you to be in control of your healthcare needs. If you’re unhappy with your current insurer’s service, network hospitals, or premium, porting is a practical alternative that helps you retain all major benefits without starting from scratch. However, it’s important to compare plans and assess your needs.
