Policyholders are entitled to purchase a health insurance policy from another insurer; including the insurance products is marketing. The right is limited to the transfer time of the current policy, which will be represented to the exclusion of the limited duration of the new policy.

Health Insurance Portability was originally to take effect from 1 July 2011. Meanwhile, Insurance Regulatory and Development Authority (IRDA) has delayed the date of the first in October.

Portability means the right granted to the contractor's individual health insurance (including family coverage) to transfer credit from a suitable pre-existing conditions, and time-limited exceptions, if he decides to change insurance company to another or from one floor to another plan for the same insurer, if the previous policy was continued without interruption.

The insured is faced by different insurance companies 45 days before the policy expires, in order to consider the application of the new company. With the purchase of an insurance company to verify performance claims of a common database, which is two years of claims data. Based on this information, the buyer decides to accept the proposal, and at what price it will.

The old insurer will be required to provide additional data for the new insurer within seven days after receipt of the request. The new insurer would be obliged to accept or reject the proposal within 15 days of receipt of data from the old insurer. If the decision is not issued within fourteen days, the new insurance company will be obliged to accept the proposal.

The guidelines also contain some good news for employees covered by Mediclaim group. An insured under a group policy must first change its policies in a person or family coverage with the same floating insurer that has given the group's policy. After a year he will be able to switch to another insurer, like any other person holding.

While the new insurer must consider each application, acceptance shall be subject to new rules of the insurer. For example, if the old policy provides 90 days of treatment in the hospital and after the new insurer offers only 60 days, the new policy will cover only 60 days.

It should be noted that portability applies to only one insurance company to another. The bonus can be stored in a new insurance company will be continued after migration. In addition, individual policies, portability is also extended to family members of political flux.

If the result of the acceptance of portability is still waiting for a new insurer at the time of renewal, policy, legislation to be extended at the request of the insured, in a short period with a Pro-premium for the period to be at least a month. Insurer may cancel an existing policy until a policy confirmed by another insurance company is received or written at the express request of the insured.

If the insured intends to continue with the insurance policy still exists, should be allowed to the regular premium and without imposing new conditions. For the health insurance policy, the waiting period with respect to pre-existing conditions and exemptions will be considered fixed term. If the waiting period for a particular disease or treatment of the new policy is longer than the previous policy of the same disease or treatment, the additional waiting period should be explained clearly to secure entry.

The transfer will be valid for the insured under the previous policy, and also provided an improved, at the request of the insured, to the extent that the bonus accumulated achievements of the former insurer of the previous policy. For example, if a person had an insured value of RS 2 lakh and earned bonus of Rs 50,000 with an insurance company when it moves to another insurer, and the proposal is accepted, the new insurance company to give him a sum insured of Rs 2, 50 lakh in the collection of the premium is Rs 2.50 lakh.

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If the new insurer does not have a product for Rs 2.50 lakhs, it has to offer the closest top slab, ie Rs 3 lakhs, to policyholders by charging premium Rs 3 lakhs. However, portability is only available up to Rs 2.50 lakhs.

The move allows new entrants to attract more business. The transition will be on service quality and less because of the price, because they spend more or less the same.

The main beneficiary is the insured, as we now have the flexibility to choose and change if you are unhappy with the service of your insurance provider. The guidelines now remove the risk that the new insurer rejects an application because the evil was in force before the policy was issued.

Source: ET