Porting an insurance policy is a process of switching the existing insurance provider to another one without losing the benefits or coverage that have already been accumulated. It provides individuals with the flexibility to choose the right insurance policy, regardless of the insurer they are currently enrolled with.
The Insurance Regulatory and Development Authority of India (IRDAI) introduced insurance portability in 2013 as part of its efforts to provide better customer service and ensure that insurance policies are tailored to the needs of the customer. Insurance portability ensures that customers retain their existing benefits such as bonuses and discounts when switching from one insurer to another.
Depending on the terms and circumstances set out by the insurance provider, the process for porting health insurance coverage may vary somewhat. However, the basic procedure remains the same.
How to port your insurance policy?
Step 1: When you decide to port your insurance policy, you must submit a written request to the current insurer. This request needs to be sent at least 45 days before the renewal date of the policy. It should be noted that a policyholder can start a portability request when the policy is up for renewal.
Step 2: To transfer your current health insurance coverage, you must contact the insurance provider. Two papers, including a portability form and a proposal form, will be sent to you by the new insurer. Additionally, they could share information on the various health insurance options the business provides.
Step 3: Your new insurance provider will contact your old insurer to request your medical records and other pertinent information once you have completed all the required paperwork and submitted it. They could also inquire about the history of your claims.
Step 4: When they receive such requests, your previous insurance provider is required to provide this information to IRDAI, the insurance regulator.
Step 5: The new insurance provider will determine whether or not to provide you with health insurance coverage after they have all the necessary information. This is referred to as policy underwriting. To determine whether to provide you with health insurance, an underwriter will analyze the information pertaining to you and take into account your risk profile.
Step 6: If your new insurance provider decides to cover you, they must underwrite your policy within 15 days. If there is a delay during this time, it is assumed that you are covered by the new insurance provider.
Step 7: Once both insurers are satisfied with the comparison, the new insurer will issue a Portability Certificate, which will specify the terms and conditions of the new policy.
Step 8: In order to ensure seamless porting, it is important to compare the features of the existing and the proposed policy. For instance, consider comparing the sum assured, premium rates, terms & conditions, inclusions & exclusions, riders, etc.
It is important to keep in mind that porting an insurance policy does not mean changing the cover or making any additions or modifications to the existing policy. Your existing insurer may refuse to port the policy if you ask for changes in the same. Therefore, it is important to read the policy document carefully before porting.
Porting an insurance policy in India is a simple and convenient process that can help you save money and get the best coverage. It is important to take all the necessary steps to ensure that you are getting the best deal and that all the terms and conditions are met.