If you are not satisfied with your current medical insurance provider, you can very well explore another insurer. The process is simple and convenient so long as you know the necessary provisions that enable this.
Migrating from one insurer to another enables the policy holder to avail the rights accorded to them to transfer the credit gained for pre-existing conditions and time bound exclusions, with the same insurer. And it is vital to note that there are no additional charges exclusively for availing portability facility.
“The most common reason for porting is when you have a low sum assured and the existing insurer does not allow you to increase the sum assured to the level you want. If you port that policy, you can buy a higher sum assured product. However, do keep in mind that the waiting period waiver will only be up to the original sum assured,” said Kapil Mehta, Co-founder and CEO of SecureNow Insurance Brokers.
“Another reason for porting could be that you are getting a better product either in terms of price or features from another insurer and don't want to lose the waiting period benefit,” added Mehta.
“You should port a policy when you get a better plan or a better price,” said Naval Goel, CEO and Founder of PolicyX.com
What are the benefits of porting?
Once porting happens, time-bound exclusions in the existing policy, waiting period gained in the existing policies, can be ported to a new policy. And when the option of portability is exercised in health insurance policy, all the terms and conditions shall be as per the terms and conditions of the new policy. The credits gained in the previous health insurance policy on the waiting period and time bound exclusions are protected.
Time limit applies
A policyholder who wants to migrate their policy is permitted to apply to the insurance company to migrate the policy along with all members of the family at least 30 days before the premium renewal date of their existing policy. An insurer may consider even in less than 30 days period.
“There are no such challenges in porting barring the fact that you have to start at least 30-45 days before the expiry of the current policy. This requires certain documentation too,” added Goel.
In case of pending claim
If there is an insurance claim pending, the existing insurer may charge balance premium for remaining part of policy year subject to acceptance of the claim. In such cases, the policy holder is liable to pay the premium for balance period and continue with the existing insurer for that policy year.
