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Making the switch: Taking pulse of health insurance policy portability

The reasons are high renewal premiums, inadequate service, and need for more sum assured

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Sarbajeet K Sen New Delhi
3 min read Last Updated : Apr 24 2019 | 3:04 AM IST
Rising medical treatment costs can burn a hole in your pocket. Having a medical insurance policy is a must. Whenever there is a renewal, there are questions on whether you should continue with the same insurer. There could be a number of reasons for dissatisfaction with the existing insurer — high renewal premiums, inadequate service, and change in circumstances. 

“It is always advisable to check multiple options through an insurance aggregator website and compare the benefits, features, and premium offered by different insurers. If you feel you are getting a better deal in terms of coverage and premium amount, you may choose to opt for a different insurer,” says Amit Chhabra, head-health insurance, Policybazaar.com. 

To include more members/rise in sum assured: With increase in age or more dependent members in the family, the requirement for sum assured might increase. It can be done at the time of renewal. “A significant number of people either port their health plans to another insurer or get additional features added to their policy,” says Prasun Sikdar, managing director and chief executive officer, Cigna TTK Health Insurance. You may also consider a new health cover with additional features, in case you need to include more family members under your health insurance cover.

Altered policy terms:  Altered policy terms may be needed, if there is a new addition to your family or a member covered under the policy has passed away. This may affect the amount of premium payment required at the time of renewal. Any change in details on dependents can only be done at the time of renewing your policy.

New product offer: There may be a chance the policy you are holding may be offered by a different insurer at a cheaper premium. There could also be additional benefits. “Customers usually port a health insurance policy if it is very expensive or has red flags such as caps on room rent, co-pays, etc. An individual can also be lured due to low premiums. But one should be careful, as it is usually coupled with reduced coverage,” warns Sikdar. 

However, only similar health policies can be ported. “People who are covered under group health insurance and wish to migrate from their group policy to an individual policy can do so by first shifting with the same insurer and subsequently to another insurer,” says Sikdar.

Whatever your compulsions, you must renew your policy in time or complete the porting process within the stipulated deadlines. If you miss paying your renewal premium on time, your policy will lapse with adverse consequences such as losing all benefits of no-claim bonuses and waiting period served out.

Key benefits
  • Similar policies can be ported
  • Make a request to the insurer 45 days before the policy expires
  • Based on the underwriting, the new insurer may choose to accept/reject
  • Credits on time-bound exclusions and no-claim bonuses can be ported
  • Continuity of benefits in terms of the waiting period and no claim bonus.

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