Health Insurance Portability
InsuranceHealth insurance portability allows policyholders to switch from one health insurer to another without losing the waiting period benefits already accumulated. IRDAI mandated this right for all individual and family health policies to promote competition and customer choice.
In detail
Portability rules:n1. Apply for portability 45 days before policy renewaln2. New insurer must honour waiting periods already served (e.g., 3 years of 4-year pre-existing disease waiting period)n3. New insurer cannot reject portability for conditions that were already covered in old policyn4. New insurer may decline portability if you have filed large claims or have conditions they do not covern5. Premium may differ (new insurer sets their rates)nnWhen to port:n1. Service quality has been poor (claim rejections, long processing)n2. Better product available elsewhere (higher sum insured, better benefits, lower premium)n3. Current insurer significantly raised premium at renewal
Real-life example
Meena has had Star Health policy for 5 years. In year 4, Star rejected her hospitalization claim citing policy exclusion. She files IRDAI complaint (resolved), then ports to HDFC Ergo at renewal. HDFC Ergo honours her 5 years of accumulated waiting period benefits -- including now-covered pre-existing condition. Lesson: bad claim experience is a valid reason to port.