Portability Of Life Insurance Policies To Be Made A Possibility: IRDA

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Till now health insurance portability option was known, nonetheless to render life insured at an advantage in every possible respect, the insurance regulatory body is mulling portability option on life insurance policies. Know in detail the provisions of health insurance portability.

The feature is under consideration with no chance of premium loss owing to shifting of a life insurance policy from one insurer to another. Policy in the case is also not required to be surrendered. The proposal is to be likely in place after the insurance industry overhauls to adopt a complete digital platform.

Portability Of Life Insurance Policies To Be Made A Possibility: IRDA

The move aims to enable insured to save on surrendering charges in addition to other cost in a case when they happen to be unsatisfied with the product. Or if a comparably better insurance product is on offer. The policyholders would be at an advantage in terms of both service as well as associated costs. Any resort to mis-selling by agents in the industry shall also be checked with the allowability of portability.

Discontinuance of a policy (life) as of today may attract a surrender charge to an extent of 70% of the premium amount paid. To roll out the portability feature, much has to be done on the part of the regulator, IRDAI as well as insurers so that basic objectives are met.

Procedures like changes in underwriting procedure, electronic issuance of policy ( which now has been done for both new policy as well as renewal cases), standardization of rates across the industry (morbidity rates and mortality rates).

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