What is Portability in Health Insurance?
Right of every policy holder
Portability is the right given to the policy holder to move or transfer their existing health insurance policy from one company to another. The critical aspect in portability is to ensure the policy holder (insured) not lose the benefit accrued from his existing policy during the renewal to another insurance company. Portability will provide the choice to the policy holder to select the insurance company of his choice, simultaneously not losing out on the credits gained from his previous policies.
What benefits can be transferred under portability?
Waiver of any Pre-existing diseases condition.
Waiver of waiting periods for time-bound exclusions (cataract, replacement surgeries etc).
Enhanced Sum Insured
Sum insured enhancement * to the extent of the cumulative bonus acquired from the existing policy.
* — For e.g. if a policy holder had a sum insured of Rs. 3,00,000/- and accrued bonus of Rs. 50,000/- under his existing policy. When he decides to transfer the policy to another insurer and in the event of acceptance of his proposal, the revised sum insured to be offered by the new insurer has to be Rs. 350,000/-.
What policies can be considered for portability?
Individual Health InsuranceAll individual health insurance policies issued by General Insurers and stand-alone health Insurers including family floater policies.
Group Health InsuranceIndividual members, including the family members covered under any group health insurance policy of a General Insurer or Stand-alone health Insurer shall have the right to migrate from such a group policy to an individual health insurance policy or a family floater policy with the same insurer.
Similar Health InsurancePortability is allowed only for similar health insurance plans. A reimbursement type plan cannot be ported to a benefit type health insurance plan.