A 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.
New 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.
AdvertisementVery 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 break.
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.