Mediclaim policy-holders dissatisfied with the services of their insurance provider can easily switch to another firm with accumulated bonuses beginning next financial year.
The General Insurance Council — an association of non-life insurers — has arrived at a decision and the recommendations will be sent to the Insurance Regulatory and Development Authority shortly.
“Insurers have reached a consensus and probably, recommendations will be sent to the regulator by the end of this month or early next month,” Oriental Insurance Company Chairman and member of the council M Ramadoss said. He added the portability would come into being by April 2009.
The council has devised the draft guidelines in favour of both customers and insurance companies, he said. It will be implemented as and when the regulator approves the framework.
Under present norms, a policy-holder is given health cover for a year and the same has to be renewed every year. If there is no claim, the policy-holder is entitled to a bonus in the form of an increased sum and for every claim-free year, this bonus gets accumulated.
After the expiry of the term, if one intends to switch over to a new firm, the accumulated bonus is not carried forward and one has to start all over again.
For senior citizens who bought the policy before turning senior, it becomes more difficult because companies are reluctant to sell new mediclaim policies to the elderly.
In order to resolve the issue of bonus as the policies of insurance companies vary, the council has reached some consensus on a minimum cover benefit transfer, Ramadoss said.
