Porting your health insurance policy can be a smart move if you’re looking for better benefits, improved services, or more affordable premiums. However, the process isn’t as straightforward as it may seem. When done correctly, portability lets you transfer your policy to a new insurer without losing accrued benefits, such as the no-claims bonus or waiting periods. However, an error during this process can make you underinsured or burdened with unexpected expenses. Here are five common mistakes people make when porting their health insurance policy and how to avoid them.
1. Not Reviewing Your Existing Policy's Limitations
The greatest error in transferring health insurance is failing to take proper review of what your previous policy lacks. You might be tempted by what a new insurer offers you, but it's vital to understand what you're leaving behind. See whether your previous policy covers conditions or treatments that may not be included by the new insurer. Also, check co-payment clauses, sub-limits, or room-rent capping in your existing policy to see if the new plan offers better or equivalent terms.
2. Missing the Portability Window
Health insurance portability is time-sensitive. As per the Insurance Regulatory and Development Authority of India (IRDAI), you can only start the process of portability during the renewal period of your policy.
The window usually opens 45 to 60 days before your policy expires. Missing this window may result in losing the portability option altogether, and you will have to either renew your existing policy or buy a new one without retaining any of the benefits you have accrued from your existing plan.
3. Missing a Thorough Comparison
Portability is not just about changing insurers; it is about ensuring that the new policy meets your health and financial needs. Most people do not consider important comparisons. Instead, they are attracted by high premium rates. But some other points, like the claim settlement ratio of the insurer, and the number of network hospitals covered inclusions, exclusions, and after-sales services, are also equally important. Cheaper premiums may lead to a lesser scope of coverage or a longer claim settlement period. Do an online tool or consult experts for an overall side-by-side comparison before making your decision.
4. Failure to Disclose Medical History
Porting your health insurance requires no negotiation for honesty. Hiding any pre-existing conditions or past claims may lead to rejections of claims or even policy cancellation later. Even though your existing insurer has the responsibility to share your policy history with the new insurer, a difference in your declarations might raise a problem. Ensure that you declare accurate health information and past claims while porting.
5. Missing out on new waiting periods
Portability provides for carry-over of waiting periods of pre-existing diseases.
But it has led some to assume that all waiting periods are waived. Although the waiting period of the new policy on the new policy would carry over the waiting period on the new conditions, waiting periods could accompany newly added conditions.
For example, if you are covered for maternity benefits through the new insurer, you can only avail yourself of such benefits after several months or even years.
Read between the fine print to avoid surprises.
Porting your health insurance policy is quite valuable; however, it will require your due diligence to avoid committing costly mistakes. Ensure that you review your previous coverage correctly, time your porting application, and scrutinize what is stipulated in the new terms of coverage. Remember to disclose all relevant facts honestly and ensure that this new plan adequately meets your requirements.
Health insurance is a protective blanket for you and your family so take the time to get it just right—it's worth it as you'll be able to better sleep at night.
