Is Health insurance policy portability possible
Yes. At last Health Insurance portability is possible. Talks on this portability have been on for some time now. It goes without saying that this will bring great relief to dissatisfied health insurance policy holders. Insurance Regulatory and Development Authority (IRDA) on Thursday the 10th of February 11, has allowed them portability that is, shifting policies from one insurer to another on same terms from1st of July this year.
Insurance regulator, IRDA said, “The Authority has examined various issues involved in the portability of health insurance plan and has issued necessary orders for effecting portability which will be implemented from July 01, 2011. The accepting insurer shall provide cover, at least up to the sum assured in the previous insurance policy “.
Benefits:
- The portability facility will allow policy holders to switch over to another insurance company with the same conditions.
- The new facility will also help those policy holders who stick to one insurer throughout life for fear of losing the cover for Pre Existing Diseases (PED).
- Health insurance policy portability will also help people shifting from one part of the country to another. In want of such facility they were put to disadvantage due to lack of their insurers’ offices at new locations.
- In case of change of jobs, policy holders will not lose health insurance cover now changing the insurer won’t be a problem anymore.
IRDA adds, “It is essential to protect the policyholders against discontinuity and consequential loss of PED cover by making the health insurance plans portable across the insurance companies”.
Health insurance plan’s design have specific exclusions for PED for a specified period of cover during the initial year because of which the policy holders don’t get this cover if they change their insurance firm – this discouraged a health insurance policyholder from switching insurers.
IRDA decision is post numerous requests from consumer associations and policyholders for enabling portability of health insurance policies. They have even directed insurance companies to mention in the prospectus and sales literature that all health insurance policies are portable.
This is the second portability in insurance sector, first one being that of motor insurance policies.
- Star Health & Allied Insurance
- Apollo MUNICH and
- Max BUPA
Are the three standalone health insurers currently in the market?
The other players which offer health insurance policies are:
- National Insurance Company,
- United India and Oriental Insurance and
- ICICI Lombard.
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