What To Keep In Mind When Switching Health Insurance Policies

If you are planning to port your existing health insurance policy to a new one, the first thing you should consider is whether all your current benefits and coverage are being offered by the new policy. Other important factors to evaluate include the sum assured, premium costs, network hospitals, and the inclusions or exclusions of specific treatments. 

“Additionally, check for extra benefits such as free annual health check-ups, no-claim bonuses, and similar perks. Carefully review co-payment clauses, sub-limits, and room rent capping, as these can significantly impact out-of-pocket expenses during claims. Finally, consider the reputation of the insurer, particularly their claim settlement ratio and quality of customer service,” says Niharika Singh, ED marketing, IFFCO Tokio General Insurance Company. 

Retain Benefits 

Customers can retain the benefits earned at the time of porting to a new insurer. The insurance regulator – Irdai, provides the right to port policy to any other insurer based on the policyholder’s choice. The regulation states that the new insurer shall allow for credit gained by the insured for a pre-existing condition(s) in terms of a waiting period. 

“This applies not only when the customer is moving from one insurer to another but also from one plan to another with the same insurer. This ensures a smoother transition and protects one from losing valuable benefits when making changes to health insurance coverage,” says Parthanil Ghosh, director & Chief Business Officer, HDFC ERGO General Insurance. 

Things To Consider 

Before deciding to port your health insurance policy, consider several important factors.

Check Available Features: Review the features of the new policy to ensure they match or exceed your current coverage, including room rent limits and waiting periods for pre-existing conditions.

Transfer Bonus: Transfer any accumulated cumulative bonus from your current policy to the new one to increase your sum insured without losing benefits. “Confirm that the sum insured in the new policy meets your current coverage needs, and evaluate any additional features like NCB shields or coverage for consumables that may be useful despite potential extra costs,” says Bhaskar Nerurkar, head- health administration team, Bajaj Allianz General Insurance. 

Documentation: Gather all necessary documentation for a smooth porting process, including renewal notices and past policy details. When comparing policies, prioritize comprehensive coverage over the lowest premium to ensure adequate protection. Keep in mind that insurers may review your medical history and require tests, particularly for high-risk conditions, which could affect your portability request.

Obtain Portability Form: Request a portability form from your current insurer. This form will contain details about your policy and will help in the seamless transfer of your policy.

Wait For Approval: “The new insurer will review your application. They'll inform you of their decision within 15 days of receiving your portability application,” says Nerurkar. 

Policy Issuance: If your application is approved, the new insurer will issue the policy document. Make sure to review the policy terms and conditions carefully.

Cancel The Old Policy: Once you have the new policy in hand and are satisfied with the terms, inform your old insurer to cancel your policy. Click here to read how to port your health insurance policy. 

Considering these factors will help you make an informed decision and maintain suitable health coverage tailored to your requirements.

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