year back Insurance Regulator introduced the portability of health insurance. Approximately 10 - 15000 policy holders ported their policies to other
insurers. There are hurdles and benefits not yet fully understood.
India assurance, General Manager Segar Sampath said, "While porting allows transferring of the credit gained by the insured for
pre-existing diseases, it does not allow transfer of free cover or no-claim
bonus to the new insurer and a policyholder does not want to lose this even
though he may want to port" to Financial Chronicle.
Very few active policy insurers want to accept porting from
people above the 45 year age group. The IRDA - Insurance Regulator and
Development Authority does not allow commission to be paid in the first year of
a ported policy. IRDA also reserves the right to allow porting only when the
policy holder is not a defaulter and has paid premiums regularly without a
Porting a policy can only happen after a 45 day notice,
before renewal is due. To port a policy from present insurer to the new insurer
- a form has to be filled up in advance.
The new insurer will now check your medical and claim
history and process the application within a week on a porting web site created
by IRDA. The old insurer will furnish the required information. The new insurer
will communicate with you within 15 days. Failing which he loses the right to
reject your policy and has to accept it by default.
In case of any delay in portability the existing policy is
extended by paying a short term premium.
The existing or old insurer cannot cancel your policy
without receiving a confirmation from the new insurer.
In case of dissatisfaction with any service you
can contact the grievance cell of IRDA.