How does the health insurance portability work? Essential Things you need to know Before Switching Health Insurance Providers.

Nowadays healthcare become more expensive in India, people show interest in investing money in various health plans to back financial protection and get covered in emergencies. In today’s competitive health insurance market, the plan you purchased a few years ago might not be fit for your current requirements. But with the help of the IRDAI’s health insurance portability scheme, you can switch from your current plan to a new plan or service provider without losing the current plan benefits.

What is health insurance?

Health insurance is a type of insurance plan that helps cover you and your family’s medical expenses during emergencies. When you have a health insurance plan, you must pay a premium to an insurance company. In return, they pay for doctor visits, hospital stays, surgery expenses, and medications. It helps you to cover the huge medical expenses and prevent your huge financial loss during hospitalization.

What is a health insurance portability scheme?

In 2011, the Insurance Regulatory and Development Authority of India (IRDAI) launched the Health Insurance Portability Scheme in India. Under this scheme, policyholders can transfer their existing health insurance policies to another insurer if they find a better option in terms of coverage, premium, services, or network hospitals. They can enjoy the benefits of the current plan without compromising on the benefits they have already earned.

When Should You Port Your Health Insurance?

Unsatisfied service: You are experiencing unhelpful or unresponsive support when you need assistance from your policy providers.

Delay in claim settlement: Financial support is crucial during medical emergencies but showing delay in claim settlement may lead to a significant issue.

Need additional coverage: When you need specific coverage for your requirements but your current policy doesn’t provide the additional benefits.

Have no wide plans: When your insurance providers are not providing a comprehensive plan needed to cover a wide range of medical needs.

How to choose the right insurance provider?

Choosing the right insurance provider is a crucial step in health insurance portability. Following key factors to consider when selecting the best insurance company for your needs.

Better customer service: Quick Customer support is an essential key factor when we select an insurance provider because it ensures that any issues you have will be dealt with quickly and efficiently.

Quick claim settlement: It is important to know that they offer a quick claim settlement process for avoiding financial stress during emergencies.

Huge medical coverage: Choose a company that offers extensive medical coverage to protect you against a wide range of health issues and minimizes out-of-pocket expenses.

Network hospitals: When choosing an insurance provider, ensure they have a network of hospitals that offer easy access to cashless treatment options across multiple locations.

Cost-effectiveness: Choose insurer providers who offer to balance premium costs with the benefits and provide benefits without losing previous policy coverages.

Attractive add-ons: Choose an insurer with various benefits like attractive add-ons, like maternity coverage or critical illness riders, to customize your plan effectively.

Essential Steps to Porting Your Health Insurance

Step 1: Select the new insurer who satisfies your needs, customer service, claim settlement, and other additional benefit.

Step 2: Analyze the plans provided by the new insurer, and check the coverage details, premiums, exclusions, and any special features to ensure to satisfy all your requirements.

Step 3: Notify your current insurance provider about your intention to switch. It is essential for the portability process and ensures an easy process.

Step 4: Get a portability form from your new insurer and is essential for transferring your existing policy details and benefits.

Step 5: Submit the required documents such as your current policy details, identity proof, and medical history, to the new insurer.

Step 6: The new insurer will review your application and may contact you for further information if needed. Based on the documents provided, they will evaluate your eligibility for the new policy.

Step 7: The new insurer approves your application, and they will issue a new policy. You can get the same benefits as a no-claim bonus or other benefits provided by your previous policy.

Step 8: Once your policy is issued, contact your previous insurer to terminate the old policy. You can ensure a smooth and hassle-free transfer process.

Advantages

Better coverage: You can choose an insurer provider who provides a plan that suits your current needs, offering additional benefits or lower premiums.

Continuation of benefits: You can enjoy the benefits of the current plan without losing the benefits you have already earned in the past plan.

Wide plans: You choose the right policy insurer that provides wide plans for specific coverage for your needs.

Better customer service: You can choose the insurer with better customer service, faster claims processing, or a wider hospital network.

Disadvantages

Possible Premium Increase: The new insurer may charge higher premiums based on your age, health status, or the features of the new plan.

Coverage Gaps: There might be a gap in coverage during the transition period if the process is not handled smoothly.

New policy challenges: Your new policy will be denied due to Incomplete Documentation, Late Application, Policy Lapse, and false information.

How to get a new policy without being rejected?

Ensure you submit all required documents when applying to switch your plan, as missing a single piece of paperwork can result in rejection.

Policy violations, such as fraudulent claims or misinformation, can also be a reason for policy rejection.

Submit your application for the new policy at least 45 days before your current policy’s renewal date to avoid any issues.

Make sure your old policy is inactive; if not, your current policy will be denied.

Additionally, if the new policy does not meet IRDAI standards, or is still within waiting periods for certain conditions, your request may be denied.