Consider this: your current health insurance policy may not fit your current needs, and you might not be entirely satisfied with your insurer’s performance. But here’s the excellent news-you could potentially get better coverage for a lower premium by making a change.
Thinking about switching your health insurance policy to another company? It’s a process known as ‘portability’ in the insurance industry. But before you decide, it’s crucial to grasp the process and implications of such a move fully.
The Insurance Regulatory and Development Authority of India (IRDAI) has empowered insurance companies to evolve and improve their services to policyholders, fostering increased competition among insurers.
If you decide to change your insurance company while keeping your existing policy benefits, starting the process at least 45 days before your policy renewal date is essential. Some companies now allow policy porting up to 15-30 days after expiry, one day before renewal.
It is advisable to complete the process of changing your policy as soon as possible to avoid any difficulties, as new companies cannot issue policies after the expiry of the renewal period.
You may consider changing your insurance company in the following cases:
- If the terms and conditions of your current policy are not favorable.
- If other companies offer higher protection for the same premium.
- If the hospitals near you are not included in your insurance company’s network.
When considering changing your policy to another company, the main thing to consider is the sum assured. For example, suppose your current policy covers up to Rs. 7.50 lakhs, and you decide to switch to a new company offering a Rs. 10 lakh policy.
In that case, the new company will consider the old policy for Rs. 7.5 lakh, and the remaining Rs. 2.5 lakh will be treated as a new policy, subject to waiting periods and other conditions per the company’s rules. It’s essential to be vigilant when increasing the policy value and switching to a new company.
When you’re in the process of switching to a new insurance company, it’s essential to provide all the details of your previous claims and medical treatments.
Transparency is key here-failing to disclose this information could result in your policy being canceled or your compensation being denied.
When selecting a new company, consider the claim payout ratio, and don’t let a low premium be the only deciding factor.
Understand the terms and conditions, including insurance value, compensation methods, sub-limits, and co-payments. Compare the old and new policies, seek expert advice, and make an informed decision.