Insurance portability

Some of you may be aware that effective 1^st Oct 2011 anyone can change its health insurance policy from company to another, without losing the benefits. According to the guidelines issued by IRDA, following process needs to be followed for change over

Apply to new insurer at least 45 days before the existing policy is to expire. This time gap will allow new insurer to verify the history of claims that the applicant has made.  While insurance company can still accept if you apply within 45 days, however the right to rejection is available with the insurance company during this period.

• On receipt of application for portability, the new insurer shall furnish the Portability Form along with proposal form and other relevant product details to the policyholder. The policyholder has to fill in all the forms and submit the same to the new insurer. Within 15 days the insurer must communicate his decision on the application, otherwise it will be deemed to be assumed that the application has been accepted and it subsequently cannot be rejected.

• No claim bonus will also be transferred to the new insurers. No claim bonus can be used either to reduce the premium or sum assured can be enhanced.

• Treatment of pre-existing diseases will be done as per the present insurance policy. For example, if the previous insurer has allowed 4 years to lapse before covering any existing disease and say 3 years have already elapsed, than the new insurer can insure this disease also after waiting for a maximum of 1 more year.

• If a person is covered by a group medical policy (say of an employer), s/he has right to move with the same insurer to individual policy. After one year, the person has right to move to another insurer.

• It is not necessary that premium after moving to another insurance would remain same, that would be decided as per the premium policies of the new company.