For example, if the insurer does not respond within the specified time, it is assumed that the proposal was approved. "This clause makes the portability of the process very quick and efficient," says Mahavir Chopra, head of e-business, management of the Mediterranean.

In addition, the IRDA guidelines to switch between a group Mediclaim policies float individual or family and allow the insured to keep the waiting period credit. Because many families depend solely on the group policy from their employer, these transfers will enable them to purchase policies on their own without having to wait four years before pre-existing conditions are covered.

Will It really help?

Although the diktat IRDA are welcome, portability should not be considered a panacea for all the defects of the insured. "The portability of a health insurance policy is only on paper," says consumer activist Jehangir Gai. "As long as politics is possible, every insurance company has secured a good (if not to say there can be no dispute)."

He emphasized that it was only after a claim arises insurers are concerned about the repeated requests later. Then the company will start nitpicking and he thinks that migrate to another insurer. "The problem is that portability is not a question of law. This is the new company to accept or reject a proposal. What insurance company wants to take responsibility for difficult policy? "Asks Gay. There are other questions too. Many believe that insurers are outright reject proposals from the elderly, considered a high risk category, the contempt for the purpose of portability.

In addition, for those who have accumulated no-claims bonus of portability may prove to be a profitable proposition. As in IRDA circular bonus can be transferred to the new policy, but the premium charged will be improved to the sum insured. This means that the insured will pay a higher premium if they want insurance coverage even in the new policy.

Arvind Laddha, Managing Director and CEO of Vantage Insurance Brokers, said another aspect that could go against the insured. "When a customer migrates from one group to individual coverage, it will get credit only for the period for which he was insured with the insurer's current group. This seems to be a compromise for the insured, especially if he had any claims with the previous insurer, "he said.

Policyholders should also remember that they can move only in individual policies offered by the same insurer. When the year is to continue this policy, are free to switch to other insurance companies.

Source: ET