Health insurance premium hiked? Port to a new health insurer

New Delhi: After the insurance regulator (IRDAI) mandated norms on standardisation of health insurance exclusions  came into force from October 1, 2020, several policyholders have complained of huge hikes in premiums.

In a circular dated March 16, 2021, addressing CEOs of all General and Standalone Health Insurance Companies, IRDAI informed that it has added some additional norms in addition to the norms specified at Clause (C) of Chapter-III of the guidelines that general and health insurers should adhere to while effecting modification of existing products.

According to the new norms general and health insurers are not allowed to modify the existing benefits, add new benefits in the existing products, which leads to imposing an increase in premium. However, it is clarified that insurers are permitted to effect minor modifications as stipulated at Clause (G) of Chapter – III of consolidated guideline on product filing in health insurance business.

Several policyholders have seen their premiums at renewal shoot up 30-100 percent in some cases over the last few months. With the second wave of the deadly pandemic likely to push up claims further, insurers’ loss ratios are bound to come under pressure. 

Dealing with health insurance policy hikes

The Insurance Regulatory and Development Authority of India (IRDA) has devised a convenient method that comes as a welcome relief to those unhappy with their current health insurance providers - Health Insurance Portability. 

Health Insurance Portability allows policyholders to transfer their existing health insurance policies to a new health insurance provider. Portability safeguards customers from being taken for granted by insurance companies, gives them flexibility, and offers better and more options.  The best part about Health Insurance Portability is that customers have the freedom to switch to a better health insurance provider, without having to worry about losing accrued benefits from the previous policy. The policyholder may also carry forward the waiting period for coverage of pre-existing diseases. 

When should you move?

Firstly, remember that you can port only to a like policy. So, while you can shift to and from an individual plan to a family floater policy or a general insurer to a health insurer, you cannot move from an indemnity plan to a critical illness plan. Next, consider the reason you want to move.

How to port your health policy

1. Start the porting process at least 45 days before the renewal of your existing policy. Research well before porting to the new policy.

2. Fill in the Proposal Form and the Portability Form available with the new insurer. It will require your personal information, and medical history with pre-existing diseases and past claims.

3. Submit the relevant documents, which can include:

• Filled in Proposal and Portability forms.
• Identity and residence proofs.
• Medical history, past claims and newly diagnosed disease, if any.
• Policy certificates of previous years.
• Latest notice of renewal listing coverage continuity and other details.
• Self-declaration in case of no claims.
• Investigation report, discharge summary and other documents in case of claims.

4. The relevant data will be put up on the official portal of Irdai and the existing insurer will have to provide the information regarding your medical and claims history to the new insurer. This is why you don’t need to inform your existing insurer about porting as he will automatically know once it is put on Irdai portal and information is sought.

5. After receiving all the details, the new insurer has to underwrite the proposal and inform the policyholder within 15 days. If it doesn’t, the policy is automatically considered to be accepted.

6. There are no extra portability charges, only the premium, which can increase depending on the sum insured, medical condition and claims history. If you are above 45 years or have a medical condition, you will be required to undergo a pre-policy medical check-up.

Source: Times Now News