What to know before changing your health insurance contract


Ankit Agrawal, CEO and co-founder of InsuranceDekho.com, said: “Carrying health insurance policies offers policyholders flexibility. You can look for better coverage, a better premium or services from another insurer who is ready to provide the benefits you are looking for in your health insurance policy. “

Portability also allows the insured’s credit to be transferred for pre-existing conditions and time-limited exclusions, provided the previous policy was continued without interruption.

How it works: Once you decide to transfer your health insurance policy, you must notify your new insurer at least 45 to 60 days before the existing policy expires. The new insurance company will ask you to complete a portability application and provide copies of the previous year’s policy. The new insurer will then connect with the existing insurer to inquire about your state of health and the history of your claims. After gaining a thorough understanding and considering the underwriting guidelines, the new insurer will either accept or reject the proposal.

It usually takes 15 days, otherwise it will become mandatory for a new insurer to accept the portability request made by the insured.

Sheenu Sehgal, Vice President and National Head of GI, Bajaj Capital Ltd, said: “An insured could face issues with carrying health policies if the expiring policy becomes the subject of a claim, if the documents presented are insufficient or if the insured suffers from a pre-existing critical medical condition. . “

Also, you should know that changing insurers has its own advantages and disadvantages. Let’s take a look at some of the benefits first.

Customization: You have the option of making any necessary changes to your health insurance policy that meet your needs at the time of carry.

Cumulative benefits: Portability allows you to transfer accrued benefits such as the no-claim bonus to the new policy. This means that you won’t have to earn most of the rewards again.

Premium: Switching to a new insurance policy can help you save money, as you can choose a policy with a more affordable premium than your existing health insurance policy.

Now let’s take a look at some disadvantages of health insurance portability.

Time based: The portability of health insurance is time-based, and you can only transfer it to a new health insurance policy when it is nearing renewal.

Unauthorized policy change: You may be able to switch from a health insurance policy to a similar one or make specific changes to suit your needs, but changing the entire policy is not allowed. For example, you would not be able to switch from an individual health insurance policy to a critical illness insurance policy.

Additional premium: You will have to pay a higher premium if you choose a health insurance policy with higher benefits.

“You need to thoroughly analyze your needs before deciding to change. Plus, you shouldn’t forget to browse coverage features, benefits, premiums and compare similar plans online to make the best decision, ”Agrawal said.

When to wear: First you need to analyze why you want to port. The reasons can be many. For example, compared to your current insurer, another may have a larger hospital network or offer more affordable premiums with similar coverage benefits.

What you should do: Porting to new health insurance is better and useful as health products are improving rapidly today. The policy you bought ten years ago is probably overpriced and outdated today. But you should also know that carrying a policy only adjusts waiting times. You will still be bound by the premiums, benefits, exclusions and contracts offered by the new insurer

There are different health insurance providers and everyone can always choose the best policy for their needs. Portability comes into play when consumers want to gain additional benefits and maximize them.

In addition, poor service can also be one of the main reasons why policyholders seek alternatives with better quality and accessibility.

“In the event that the current health insurance policy does not provide additional coverage, it is advisable to opt for additional coverage. This will improve the coverage and benefits of the policy, ”said Aatur Thakkar, co-founder and director of Alliance Insurance Brokers.

“Sometimes hidden clauses in policies wreak havoc in an emergency. These clauses are not clearly spelled out, or the consumer may not even be aware of their existence when purchasing the policy. Therefore, one should choose to switch to an insurer that is transparent in its policy documents, ”Thakkar said.

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