Before you renew your insurance plan, have a look at your health plan and analyze whether its premium justifies the offered benefits and insurance coverage. If you find your plan a little expensive, you can easily switch to a new insurance provider. In a matter of a few clicks, you can see different insurance quotes offered by various insurance providers. The best thing about a medical insurance plan that it can be can be ported in little to no time. All you have to do is a Google search. By the end of this article, you will know how to port your medical insurance plan.
What is the Benefit of Porting a Health Insurance Plan?
Another advantage of porting, other than more affordable premium or better benefits, is that it lets you enjoy continuity benefit. For example, suppose that under your previous policy, a medical condition was not included in the coverage for the first 2 years. But by the new policy offered by the new insurance provider, the waiting period for this condition is 3 years, then two years from your previous policy will be deducted and the waiting period shall be of 1 year only.
However, it is not applicable to a senior citizen mediclaim policy. Porting a health plan is easier for young people. Generally, insurance providers are reluctant to port senior citizens plans. It is because the waiting period is either reduced or entirely waived off and the new insurer’s liability comes into action earlier.
Individuals who have undergone a hospitalization or have chronic illness get very limited options when it comes to portability.
What is the Required Time to Port Health Insurance Plan?
While a plan can be ported within 45- 60 days of the policy expiry, the convenience of porting varies from insurance provider to insurance provider.
The porting process is very simple. Apart from the regular paperwork, it involves few extra forms and you are done.
Examine the Features and Benefits of you new Health Insurance Plan
If you are looking to port your plan, then you must pay attention to the features and benefits of the new plan. Cautiously analyze the new insurance plan, and compare the features like waiting periods, exclusions or co-payments etc.
Undoubtedly, the premium is an important consideration; yet, one shouldn’t make the porting decision based only on the premium amount. Make sure to look at the Incurred Claims Ratio (ICR) of your preferred insurance provider before opting for a plan. As per insurance experts, it should be 70 percent to 90 percent.
Some insurance providers might offer to port a plan after adding some conditions. One must cross check if the preferred insurer has imposed any waiting period, or introduced a permanent exclusion so that there is no hassle at the time of filing the claim.
Have you filed a Claim? Maybe, it is Time to Port
At the time of porting your medical insurance plan, one can’t afford to miss out on the accumulated No Claim Bonus (NCB). It is offered as a reward for every claim-free year. Because of this reason, it’s recommended to port from your current insurance provider if you have filed a claim.
Don’t let only this factor rule your porting decision. If you are opting to port your plan because you are stuck with a policy that is ridiculously overpriced, or the insurer has a poor claims settlement ratio, or the insurer imposed a wide range of inhibitory clauses, then holding on to the accumulated bonus makes no sense. In such cases, there is no advantage in continuing with your current plan.
The Time Taken
As per the instructions of Insurance Regulatory and Development Authority of India, the portability applications have to be acknowledged by the insurance companies within 3 working days.
The new insurance provider has to offer insurance at least up to the amount insured by the old plan. Portability option is available for all the existing plans as well as new plans effective from July 1, 2011.
If you have a health plan and you are looking to port it, then you can have a look at the various insurance plans offered by Max Bupa health insurance. It offers policies that have maximum insurance coverage at minimum insurance premium.
Wrapping it Up
If you are eligible to port then no insurance provider can reject your application, given that your application is fulfilling the insurer’s terms and conditions. As you know, it is a little difficult for senior citizens to port their insurance plan. It is not beneficial for insurance companies and they might have to incur losses, which is why they don’t prefer porting senior citizen insurance plans.
Start looking out for new plans at least 3 months before the due date so that you can research well and find the best plan. Always double check the inclusions of your preferred plan so that your claim process is smooth. At the time of porting, keep in mind the points mentioned above.