Insurance Portability
InsuranceInsurance portability allows you to switch health or life insurance policies from one insurer to another without losing accumulated benefits (waiting periods, NCB). Health insurance portability is IRDAI-mandated. Life insurance has no formal portability -- you buy a new policy and let the old one lapse.
In detail
Health insurance portability rules:n1. Apply 45 days before renewaln2. New insurer must honour waiting periods already servedn3. New insurer can set their own premiumsn4. Cannot be rejected for conditions that were already coveredn5. NCB (No Claim Bonus) accumulated is transferrednnWhen to port health insurance:n1. Current insurer's claim service is poor (delays, rejections)n2. Better product available (higher sum insured, OPD cover, better network)n3. Premium has become unreasonably high vs marketnnLife insurance: no portability. If you want to change insurer: buy new policy, maintain both for 2 years (proving new policy is valid), then let old one lapse if medical conditions allow re-insurance.
Real-life example
Sunita's Star Health policy (Rs 5L, 6 years old): pre-existing hypertension now covered (4-year waiting period served). She ports to HDFC Ergo for better cashless network. HDFC Ergo must honour the 6-year history -- hypertension is immediately covered. HDFC Ergo sets new premium (higher, given age), but she keeps all accumulated benefits.