It is time for medical insurance portability after mobile number portability. Shortly medical insurance holders will have the tractability to switchover to another company; this is because of the guidelines for portability of health insurance policies issued by the Insurance Regulatory and Development Authority (IRDA) recently. The move is projected to upsurge the quality of services and encourage healthy competition among health insurance firms.
At present, the key issue that prevents policyholders from switching insurance companies is preexisting disease (PED) cover. In most instances, claims are the result out of such pre-existing illnesses is reimbursed only after a waiting period of 3-4 years. A pre-existing disease is described as any ailment or condition that the policyholder was suffering from, within 48 months prior to purchase of the policy.
The time during which the insurer will dismiss coverage to such illnesses is indicated to as the waiting period. Policyholders who moved to another company were handled as new customers, and needed to go through the waiting period all over again.
To attend to this, IRDA has approved guidelines on the portability of health insurance policies. The portability facility would be applicable to all existing and new health insurance contracts with effect from July 1, 2011. To effect quick portability, IRDA is making available the claim history of policies to health insurance companies.
All insurers issuing health insurance policies will allow for credit gained by the insured for pre-existing conditions in terms of waiting period when he switches from one insurer to another or from one plan to another, on condition that the former policy has been maintained without break. If the policy causes into discontinuance due to any delay by the insurer in accepting the proposal, the insurer will not consider the policy as discontinuance and will permit portability.
You will get full credit for the period of cover as well as the no-claim bonus with the previous insurer with the portability of health insurance. The credit in terms of waiting period will be limited to the sum assured, including no claim bonus, under the preceding policy. Warning! Avoid scams by researching and reading reviews regarding the company.
If you would like to upturn the sum assured, you will have to pay a higher premium. Portability will guarantee that the policyholder is not tied to one single insurer during the course of his life for apprehension of losing the cover of pre-existing diseases, or other continuity benefits like no-claim bonuses and free medical check-ups.