Health Insurance Portability Does Not Guarantee The Same Premium

Health insurance portability lets policyholders switch companies without losing all benefits built over years. But the protection is limited: completed waiting-period credit can move, subject to porting rules, while the receiving insurer can price the proposal under its own underwriting model. Thus, a higher premium is not automatically unfair, nor does a lower quote necessarily make a policy better.

Waiting-Period Credit Follows The Policyholder

“Portability law does allow a policyholder to carry over into his/her new policy the credit for any completed waiting period (between successive policies) to the new policy purchased from another insurer,” says Arun Ramamurthy, co-founder, Staywell.health.

Manish Dodeja, executive director & Chief Business Officer, Care Health Insurance, said that in the case of a health insurance policy, if a policyholder ports their health insurance policy, credit earned for completed waiting periods shall be carried forward, provided the porting is done as per the applicable regulatory guidelines.

The continuity is important for pre-existing diseases and specified illnesses. But it does not make every term identical. If the sum insured rises at porting, the additional cover can carry fresh waiting conditions while the existing cover keeps its credit.

Premium Depends On The New Assessment

Age, medical history, existing conditions, claims record, location, sum insured, and product features can affect the new quote. Insurers may arrive at different premiums because their risk models and product structures vary.

“While the premium of a policy may be greater than that of another policy, this does not preclude it from providing a more positive long-range value if the coverage provided is more significant,” says Ramamurthy.

“Insurers are allowed to assess risk and price policies accordingly, but the decision must be based on transparent underwriting norms and the terms approved for the product,” says Dodeja.

Compare Benefits Before Moving

“Porting protects your waiting-period credits, but it does not lock in your previous price. Think of it like switching mobile networks; you keep your phone number, but select a new plan,” says Sarita Joshi, head of life & health insurance, Probus.

Policyholders should compare room-rent caps, co-payment clauses, disease-specific sub-limits, exclusions, restoration benefits, cashless hospital network and claims service. They should also seek clarity on how accumulated no-claim benefits will be reflected in the new policy.

“Say you step up your cover from Rs 5 Lakh to Rs 10 Lakh when you switch. That extra Rs 5 Lakh is basically treated as a fresh policy with its own waiting periods,” says Joshi.

Consumers should begin the process well before renewal—Probus advises applying 45 days before expiry—and ask for the offered premium and coverage in writing. The choice should rest on long-term protection, not just the renewal bill.

FAQs

Can my health insurance premium increase when I port my policy?

Yes. Portability carries forward completed waiting-period credit, but the new insurer can quote a different premium based on age, health profile, claims history, city, sum insured and product features.

Will I lose my waiting-period credit if I switch insurers?

No, provided the porting is done under applicable rules. However, if you increase your sum insured, the additional cover may have fresh waiting periods.

What should I compare besides premium before porting a policy?

Check room-rent limits, co-payment clauses, sub-limits, exclusions, restoration benefits, cashless hospital network and claims service. A lower premium may not always mean better protection.