How to change insurer using insurance portability

If you are not satisfied with the services of your existing medical insurance provider, you can move to a different insurer. Health insurance companies often require a person who has been newly insured to undergo a waiting period before allowing pre-existing health conditions to be covered under the policy.

However, when a policy is transferred, the waiting period completed with the existing insurer can also be transferred. If the new insurer has a longer waiting period, the policyholder will need to wait only for the additional time period with the new insurer after the plan is transferred. The continuity in policy will also be given on timebound exclusions. Many health policies exclude certain surgeries for a fixed period, and with portability, continuity would be considered for these conditions also.

Timing

IRDA has specified that the new insurance provider has to be approached at least 45 days prior to expiry date of the policy. You may have to begin the transfer process at least 2-3 months before your existing policy expires.

Process

You have to fill up the Irda prescribed portability form which is available on its website (www.irda.gov.in) as well as the proposal form once you decide to switch insurers.

Supporting documents

- Previous policies - Claim experience - Age proof - Positive declarations, if any (discharge card, investigation reports and clinical condition)

Confirmation

On receiving the application, the new insurance provider shall ask for the required information from your old insurance provider. If the new insurer is satisfied, it shall inform you of its decision in 15 days.
Points to note

- Depending on your new insurance provider, you can also increase your sum insured while switching to it.
- You can go for portability only at the time of renewal and not during the term of the policy.

- Cover sub-limits (limits on hospital room rents) or policy features (maternity coverage) of the new policy may differ from that of your old insurer as this is not subject to portability.

(The content on this page is courtesy Centre for Investment Education and Learning ( CIEL).)