Insurance portability: What is it?

Updated: Tuesday, April 30, 2013, 11:49 [IST]

If you are not satisfied with your current insurer, you can shift your policy to another insurer along with points earned as per the Insurance Regulatory and Development Authority (IRDA).

What does portability mean?

As per IRDA, portability means transfer of credit gained by the insured for per-exsisting conditions and time-bound extensions if the policy holder chooses to switch from one insurer to another insurer or from one plan to another plan of the same insurer, provided the previous policy has been maintained without any break.

Portability of health insurance

Rights

You can port your policy from and to any general insurance company or specialised health insurance company
You can port any individual/ family policies
Your new insurer has to give you the credit relating to waiting period for pre-existing conditions that you have gained with the old insurer
Your new insurer has to insure you at least up to the sum insured under the old policy
The two insurers should complete the porting as per the timelines prescribed in the IRDA (Protection of Policyholders' Interests) Regulations and guidelines

Conditions

You can port the policy only at the juncture of renewal. That is, the new insurance period will be with the new insurance company
Apart from the waiting period credit, all other terms of the new policy including the premium are at the discretion of the new insurance company
At least 45 days before your renewal is due you have to
Write to your old insurance company requesting a shift
Specify company to which you want to shift the policy
Renew your policy without a break (there is a 30 day grace period if porting is under process)

Portability is allowed to all individual health insurance policies issued by non-life insurance companies including family floater policies.

Source: IRDA

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