After mobile number portability comes insurance portability. It means health insurance customers and mediclaim policy holders would be allowed to transfer their insurance policy to a different insurance service provider or switch to a different policy with the same insurer. This is applicable only to non-life insurers. This seems to be a welcome step for consumers as they have more freedom in choice and facilitates a competitive insurance market.
If a customer is not satisfied with the service of an insurance provider, s/he can use this to change the provider. Portability will lead to price war and improvement in service levels among the insurance companies. It could also lead to product innovation and improved delivery for retention of customers. So how does one go about it?
- 45 days before your existing policy’s premium renewal date, select and approach the insurance company to whom you want to transfer your health insurance policy.
- Complete the insurance portability form, after which the new insurance company will give the details of your new insurance policy.
- The new insurer will then evaluate the case, find out the claim history and medical history from the current insurance firm. The new insurance company should make a request to the existing service provider within 7 days from date of request for portability and the existing insurance company must provide the requested information within 7 days of getting the request from the new insurance company.
- After evaluation of the case, the new insurer either accepts or rejects the proposal for portability. This should be done within 15 working days. If it is delayed beyond 15 working days, then the new insurance company is deemed to be your insurance service provider.
The major advantages that I can see for the insured is that credit gained by the consumer due to pre-existing conditions and waiting period can be carried forward to the new insurance policy.
For example, the waiting period for most pre-existing conditions is four years. For instance, if a person wants to change the policy after a year, the waiting period for the pre-existing ailment will be three years with the new insurer. Of course this is applicable only if there has been no break in policy. A break means when the premium due on a given policy is not paid on or before the premium renewal date or within 30 days from the date of renewal. It is not advantageous for customers who have some chronic illness as their portability request would be rejected.
Overall, it seems to be a good concept but customers should use it sensibly making the choice not solely on price but considering all factors so as to be insured in the best manner.
Source
If a customer is not satisfied with the service of an insurance provider, s/he can use this to change the provider. Portability will lead to price war and improvement in service levels among the insurance companies. It could also lead to product innovation and improved delivery for retention of customers. So how does one go about it?
- 45 days before your existing policy’s premium renewal date, select and approach the insurance company to whom you want to transfer your health insurance policy.
- Complete the insurance portability form, after which the new insurance company will give the details of your new insurance policy.
- The new insurer will then evaluate the case, find out the claim history and medical history from the current insurance firm. The new insurance company should make a request to the existing service provider within 7 days from date of request for portability and the existing insurance company must provide the requested information within 7 days of getting the request from the new insurance company.
- After evaluation of the case, the new insurer either accepts or rejects the proposal for portability. This should be done within 15 working days. If it is delayed beyond 15 working days, then the new insurance company is deemed to be your insurance service provider.
The major advantages that I can see for the insured is that credit gained by the consumer due to pre-existing conditions and waiting period can be carried forward to the new insurance policy.
For example, the waiting period for most pre-existing conditions is four years. For instance, if a person wants to change the policy after a year, the waiting period for the pre-existing ailment will be three years with the new insurer. Of course this is applicable only if there has been no break in policy. A break means when the premium due on a given policy is not paid on or before the premium renewal date or within 30 days from the date of renewal. It is not advantageous for customers who have some chronic illness as their portability request would be rejected.
Overall, it seems to be a good concept but customers should use it sensibly making the choice not solely on price but considering all factors so as to be insured in the best manner.
Source