1. Recently (in Jan 2013) there were news
reported that there will be 20 to 30% of increase in premium, and will be done by all the PSU Health Insurance
Service provider. This will lead to people opting for this facility, as premium
is criteria on which majority of people buy insurance rather than the service
provided.
2. Although above may happen or not, or whenever it may happen.. Many of the people are not aware about this
facility availability and there is lot to be educated in this matter before we
opt for this facility. Here we are going to specific on this point only with
respect to Health Insurance and not other Insurance. The motive of this post is
to give you overview on how things work and give you basic understanding and guidance
on this topic & how to proceed and why and when to proceed. As today it might be case of PSU Insurance companies tomorrow it might be of other insurance companies too.
(Note: Do take advice from
professional if you are not comfortable in understanding this )
Portability: Word itself defines
what it is… Many of you might have used this service in telecom sector. Same
implies here too. What does it actually states in respect to health insurance is this…
“Portabiity means
the right accorded to an individual health insurance policyholder (including
family cover) to transfer the credit gained by the insured for pre-existing
conditions and time bound exclusions if the policyholder chooses to switch from
one insurer to another insurer of from one plan to another plan of the same
insurer, provided the previous policy has been maintained without any break.”
YES HEALTH
INSURANCE HAS PORTABILITY and one must be exited to know
on this completely as it may help you any time. 9th September 2011 is the date on
which IRDA (Insurance Regulatory Development Authority) have given guidelines and which was introduce
this service feature on 1st October 2011, which we feel is a welcome step and
must be highly appreciated by everyone, As this brings indirect pressure on
companies to maintain and achieve good level of service they provide while
issuing mediclaim policy they are authorized to give with the terms and
condition they maintain.
In recent past when an Health
Insurance company increased it premium rate suddenly, many of the people did
use this option later on after it was introduce, However we do not recommend to
use this feature just because premium of one company is less than what you
have. We strongly advocate to look at overall features, and consider all the
aspect of portability and service you will get in return before opting for this
option.
Obviously this is a tool which one
should not hesitate to use if you are getting good benefits without effecting
the existing services you have got or are not satisfied with the your insurance
company service policy condition.
Couple of points for reference
and to be made a note of for getting basic requirement and understanding on it (There
is lots to know in detail on this, do contact us if you wish to know more on
it)
1) Applicable to only Health Insurance Policy issued
by Non-Life Insurance Policy (Life Insurance companies Health Insurance is not included)
2) Process need to be initiated
45 days before the premium renewal date, so that smooth transfer is processed (Although
New Company can accept it even 7 days before.. That differs from company to
company and by case to case basis. )
3) Applicable to only Individual
and Family Floater Insurance Policy. (others policy are not covered)
4) Maximum time New Insurance
Company can ask for more information from you incase no information received
from other source is 7 working days.
5) Maximum time New Insurance
Company can take to know its decision of not accepting the policy is 15 working
days. After which they have to accept the policy if all details are provided.
6) Now the Most IMPORTANT
QUESTION.. What if New Company does not accepts my proposal.? Will or CAN An Old
Company Deny to renew the existing policy.
7) Last but not the least always
check for the accrue benefits are stayed intact which your new policy issued by
the new company which you have accumulated over the period of time on your old
policy this is one of the key point which must be noted before switching.
Many of the company do not
consider the benefits accumulated also note the premium will charged as per
their company policy which they charge to other and not your existing one which
do differ from company to company. Take your decision which suits you best.
HOW
TO PROCEED FOR PORTABILITY IN HEALTH INSURANCE
It as simple as usual process
like applying for a fresh policy in a company of your choice, You just have to
attach a Portability Form and the details of the past policy history which
you have maintained proving that there is no break in the previous policy and
other information which new company may ask for while you are looking for
portability from other company.
Generally it is seen it will give
benefits to younger group of people below the age of 45 to 50 but again, things may
and can differ from case to case.
Thanks for understanding. Do post
your comments and Question for any details you may require.
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