7 Things You Need to Consider While Porting Insurance Policy

[Apollo Munich CEO]

You can now officially bid goodbye to the days when you had to
continue with your health insurance plan for the sake of accumulated
benefits and time-bound coverage. With the new portability regulation
in place, if you experience a gap between what is promised and what is
delivered by your insurance company in terms of service or benefits,
you can choose to move out and opt for a similar plan with any other
insurer of your choice, while protecting the accumulated benefits of
the existing health insurance policy.

The change is expected to bring in minimum service requirements
amongst all insurance players, which, in turn, will have a positive
impact on customer service. New benchmarks in terms of service
standards and delivery mechanisms for the insurance players are
expected to come into existence . While portability may seem like an
ideal choice for all those who are looking for a superior level of
service and benefits, many factors must be considered before one takes
the decision to port.

Here are a few facets that should be kept in mind while making the
choice to switch an insurer.

Regular features

Does your health insurance policy cover both hospitalisation and day-
care procedures and without any sub-limits ? If not, look around and
find one that offers all these benefits.

Do remember that all the policies are different and are governed by
their underwriting principles. Hence, you should choose the one you
deem fit.

Age limit for renewal

Does your current policy have an age limit for renewal? If there is a
cut-off age, then look for an insurer who offers life-long renewal.

This is crucial to ensure health insurance coverage when you need it
the most, as during old age, health deteriorates.

Claims-led rise in premium

Does your insurance company load your future premiums in case you make
a claim in the current year? You can search for insurance companies
that do not place additional loading on premiums for claimed years.

Room rent limits, co-payments and sub-limits on treatments
Some insurance companies have daily limits on hospital room rents,
while others offer sub-limits.

You can choose to port to an insurance company that does not make any
restrictions on the type of room customers choose.

Cashless or reimbursement

What is your mode of payment and collection of medical expenses
currently? Do you have to pay first and then submit bills or are you
able to avail of cashless facilities?

With age, ailments and concerns also rise. You may choose to opt for a
cashless policy that will free your mind of payments, at the time of a
medical emergency.

Increasing coverage without restriction

In addition to life-long renewal, does your current policy allow for
an increase in coverage with progressing age? With medical inflation
rising consistently, your current medical cover may be insufficient in
the future, when you are likely to require a higher cover.

Your plan should allow an increase in cover without any new conditions
or restrictions.

Network of hospitals, doctors

Have you faced problems in getting cashless claims or too much time
was taken to close on a decision? In case it's a yes, then review your
current insurance company's network and compare it with other insurers
who have larger and widespread coverage.

At the time of emergency, it is important to rush to the nearest
hospital, rather than looking for a hospital which is covered by your
insurer.

So if you have made up your mind to change your insurer, the first
step should be to fill up and submit the proposal form of the insurer
of your choice, along with the standardised portability form. On
receiving a request for portability, the incumbent insurer will
underwrite as per their guidelines and will inform you on the final
decision within a stipulated time frame.

It is advisable to start the process at least 45 days before your
premium is due in order to take an informed decision and hedge the
risk of a break in coverage at any point in time. And a final piece of
advice: do not choose to port to a lower premium cover, as you may
lose your benefits and features previously enjoyed!