A policyholder, who wants to port his policy to another insurance company, shall have to approach to new insurance company at least 45 days before the premium renewal date of his/her existing policy with old insurer, to enable the new company consider his application. However the new insurer may consider a proposal for portability even if the policyholder fails to approach the insurer at least 45 days before the renewal date.
On receipt of an application for porting, the insurance company (new insurer) shall furnish the applicant, the Portability Form with a proposal form and relevant product literature on the various health insurance products which could be offered.
The policyholder shall fill in the portability form along with proposal form and submit the same to the insurance company.
On receipt of the Portability Form and proposal form, the insurance company shall address the existing insurance company seeking necessary details of medical history and claim history of the concerned policyholder. This shall be done through the web portal of the IRDA within 7 working days of the receipt of the Portability form.
Based on the data available on the web portal, the new insurance company will decide whether to accept the proposal and the price at which it will do so. And convey its decision to the policyholder. If the decision is not communicated within a fortnight the new insurer will be bound to accept the proposal.
Frequently Asked Questions
When the insurer is not liable to offer portability?
If policyholder fails to approach the new insurer at least 45 days before the premium renewal date.
Where the outcome of acceptance of portability is still waiting from the new insurer on the date of renewal, what will happen to health insurance cover of the proposer?
1. the existing policy shall be allowed to extend, if requested by the policyholder, for the short period by accepting a pro- rate premium for such short period, which shall be of at least one month and
2. shall not cancel existing policy until such time a confirmed policy from new insurer is received or at the specific written request of the insured
3. the new insurer, in all such cases, shall reckon the date of the commencement of risk to match with date of expiry of the short period, wherever relevant.
4. if for any reason the insured intends to continue the policy further with the existing insurer, it shall be allowed to continue by charging a regular premium and without imposing any new condition.
What is Break in policy?
A break in policy occurs when the premium due on a given policy is not paid on or before the premium renewal date or within 30 days thereof.