What do you understand by Health Insurance Portability?

health insurance

For the past two years, we have been witnessing the situation in which a virus has made so many people sick across the world. During the second wave of COVID-19 in India, we have seen how people struggled to get a bed in the hospital. And those who managed to get one faced high hospital bills. The fact is we do not know if we will be hospitalized in the future due to any kind of ailment. What we can do is to be prepared for the day when we are in the hospital and we can pay the bills without taking any stress. This can be very easily managed by buying a health insurance policy.

When you have a health insurance policy, you do not have to be bothered about clearing the hospital bills as the insurance company will take care of it. Even if you pay off the hospital bills from your pockets, the insurance company will later reimburse it to you. On informing the insurer beforehand, the insurance company and the hospital settle the bill.

Nevertheless, if you buy a health insurance policy from an insurance company, it does not mean that you have to stick to it till the last date of the policy. There is a concept of health insurance portability that enables you to switch to another insurance company.

What is health insurance portability?

The health insurance portability was introduced by the Insurance Regulatory and Development Authority (IRDA) in 2011. It is a process through which the policyholder can transfer his existing health policy within the same insurer or even to some other insurance company. If you as a policyholder find a better option, you can switch to that through this process.

Why do policyholders port their health insurance policy?

Health insurance portability is opted for by many people. Everyone has their reason. However, some of the common reasons are mentioned herein below:

  • Policyholders express dissatisfaction with their existing insurance company. This can happen for varied factors such as poor customer care service, unsatisfactory communication from the insurance agents, etc.
  • Some of the claim procedures can be very hard to understand for the policyholders. This may look easy while buying the policy but appear to be hard while claiming the coverage.
  • Some policies come with limitations to solve the health requirements of the policyholders or their families.

There can be ample reasons for porting your health insurance policy to some other insurance company or other health insurance policy in your current insurance company.

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When should you opt for health insurance portability?

Now, this is something many of us are concerned about. Although we may feel the need of porting our current health insurance policy to some other insurance company or other health insurance policy, we do not understand when to do it. Here are some of the signs that you should understand:

  • Better options: If you ever find an insurance company offering better options on health insurance as compared to your existing policy, you should choose to port. However, make sure the switching cost is not very high.
  • Hidden clauses in the existing policy: If you find hidden clauses in your current policy and you are not comfortable with them, it is time for you to switch.
  • Additional cover: If your medical need increases, you might feel the need for additional coverage. And if the additional coverage is not provided by your current policy, you can consider health insurance portability.
  • Customized services: Most insurance companies provide customized services to meet the family needs of the insured. If your existing insurer does not offer such services, you might look for a new insurance company. which set of u.s. presidents have descendants who are married to each other?

Now, all that you need to do is to find several insurance companies and check the health insurance policies that are offered by them. To find them all under one umbrella, you can visit the IIFL website.

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About the Author: Abhay Choubey

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