Health Insurance Portability

By Author: Ensured Future
Total Articles: 1
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Even before you could fully digest mobile number portability, here comes freedom of choice for your health. There has been a long debate over approval of Health Insurance Portability but the IRDA has finally given the green signal. Portability has been approved by IRDA and was to be implemented from 1st July 2011. But, implementation date got delayed and finally it came into existence on 1st October, 2011. So, now if you are not satisfied with the services of your current health insurer, don’t be upset, you would now be able to switch easily to another health insurer. Health insurance policy holders in India will be able to change insurance providers, without the fear of losing their benefits from their previous policy. All insurers will have to acknowledge a request to port the health insurance policy within three working days and make data on claim details available to the counterpart within seven working days.
What’s portable?
Waiting period: Primarily waiting period on pre-existing diseases is portable. For example if a specific ...
... disease has a waiting period of two years according to insurer A and three years according to insurer B then in this case, B can exclude the disease for only one year if the policyholder has already waited for two years in the previous policy. Sum insured: For the same example above, say, you had Rs. 2 lakh as sum insured in policy A and you opt for Rs. 5 lakh in policy B. Here you will get a claim benefit of up to Rs. 2 lakh after a waiting period of a year for pre-existing diseases. Full claim benefit, i.e Rs. 5 lakh, on these diseases will be available only after two-year waiting period. However, for other diseases, full claim benefit will be available immediately.The sum insured carried forward will also include the no-claim bonus that the previous insurer would have given you. Initial waiting period: The one-time initial waiting period of around 30 days, which most insurers have, will also get waived off in case a customer decides to port policy. Break-in Period: The regulator has also specified that a delay in porting on the part of insurers will not be considered as a break in the policy and the new insurer will have to give portability benefits instead of treating the customer as a new.
What’s not portable?
You can only port credits on waiting period on pre-existing ailments and not features. While buying a new policy, the features of the new policy will apply. So, for instance, if insurer A did not have sub limits on the room rents and the new insurer B has, you will have to accept the sub limits in the new policy. However, any waiting period on similar features of the policy is likely to get portable as well. For instance if insurer A gives you maternity benefits after four years while insurer B covers you only after two years then you can move to B and enjoy benefits immediately if you have already waited for two years in the previous policy. Clearly, with this new initiative issued by the IRDA (Insurance Regulatory and Development Authority), industry leaders in India predict an increase in competition among health insurance providers, as policy-holders will experience greater freedom in moving their policies among insurers. Health insurance service standards are also expected to rise in return, as insurance companies will increasingly compete on the quality of customer service For more information visit our website: http://www.ensuredfuture.co.in