Everyone is well aware with the concept of mobile number portability and now, it’s time to know more about health insurance portability. Mediclaim policyholders will have an option to switchover to another insurance company in India. Thanks, to the portability guidelines of healthcare plans issued by the Insurance Regulatory and Development Authority i.e. IRDA.
This step is expected to motivate healthy competition among insurers and also increase the standard of services. But, some policyholders are still confused about switching insurance companies in India because of pre-existing disease coverage.
In some situations, claims arising because of such pre-existing illnesses are reimbursed only when a waiting period is over. A pre-existing disease is an ailment which the insured person was suffering from, within around 48 months before buying a plan.
During this period, the insurer will exclude cover to such illnesses is referred to as the waiting period. Policy owner who switched to another insurer were considered as new members, and needed to go through the waiting period one more time.
IRDA has approved portability guidelines of mediclaim policies. The portability clause would be applicable to all new and existing health insurance contracts with effect from 1st July, 2001.
For instant portability, Insurance Regulatory and Development Authority are making available the claim record of plans to health insurance companies in India. Health insurers will allow for credit scored by the policyholder for pre-existing illnesses in terms of waiting period when insured ports his policy from one insurance company to another, provided the earlier plan has been maintained without break.
In case the policy results into discontinuance due to delay by the insurer in accepting the proposal, then company will not treat the plan as discontinuance and will allow portability. Insured will avail complete credit because of the portability features for the coverage period and no claim bonus with the existing insurer.
The credit will be limited to the sum assured, including no claim bonus, under the existing plan. In case policyholder wants to grow the sum assured, he or she will have to pay more premiums. This clause makes sure that the insured is not tied to only one insurer for fear of losing continuity benefits.
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