How to port health insurance without losing benefits

Has your health insurance premium spiked recently? While it may make sense to continue your policy if it offers value for money, in case there are no additional benefits, then it's probably time to make a switch.

When should you consider porting your health insurance?

Switching insurers is not something you do every year, but it is worth considering if:

• Your premiums have spiked: A price hike without an improvement in benefits may signal that it is time to make the switch.
  
• Your insurer has a slow or inconsistent claims process: If claim approvals take too long or are frequently rejected, a provider with a better settlement record can offer peace of mind.
  
• Your policy does not align with your needs anymore: If your insurer's network of cashless hospitals is limited, or if your coverage lacks certain benefits you now require, switching may be a good idea.
  
• Poor customer service: Difficulty in contacting your insurer or getting clear information on claims and coverage can be frustrating, especially in medical emergencies. If that's the case, it may be time to seek other options.

Unfortunately, many people hesitate to switch their insurer, worried they would lose the benefits of their existing policy. This is where health insurance portability comes in.

What is health insurance portability?

It helps you switch to a different insurer while retaining key benefits that come with your existing policy, like waiting period credits and no-claim bonuses. This allows you to explore better coverage options without losing the perks you may have with your current policy.

Here are the benefits you get to retain while porting your health insurance policy:

• Waiting period credits: If you have already completed part of or the entire waiting period for pre-existing conditions, the new insurer must honour it.
  
• No-claim bonus (NCB): No-claim bonus is essentially a reward from your insurer for not raising any claims during a policy year. If you have accumulated an NCB, it will be reflected in your new policy's insured sum.
  
• Continuity benefits: Any existing benefits linked to your policy duration will carry forward.

How can you port your health insurance?

Below are the five steps you need to follow if you wish to switch your insurer.

Step 1: Research various health insurance policies

Before switching, compare different insurers and policies to find one that best suits your needs.

Here's what you should look at while selecting an insurer:

• Should have a competitive premium for similar or better coverage
  
• Offer a more extensive hospital network for cashless claims
  
• Have a higher claim settlement ratio and smoother claim processing
  
• Provide additional benefits that align with your requirements
  
• Offer at least the same sum insured as your existing policy

Step 2: Notify your current insurer

Since porting is only allowed at renewal, you must inform your existing insurer at least 45 days before the renewal date to initiate the process of switching to a new insurer.

Step 3: Submit your portability request

Once you have chosen a new insurer, complete the portability request form given by them and provide the necessary documents, such as:

• Your existing policy details
  
• Renewal notice and claim history
  
• Medical records, if required

Once done, the new insurer will review your application and assess the risks (if any) before approving your request.

Step 4: Wait for approval

Your new insurer has 15 days to process the request. If they do not respond within this period, your portability request is automatically accepted.

Step 5: Ensure a smooth transition

To avoid any gaps in coverage, ensure that your existing policy remains active until the new one is approved and paid for.

The last word

To reiterate, with the spike in insurance premiums, it is crucial to assess whether your current policy remains a good fit. With the portability option, you have the flexibility to switch insurers while retaining the benefits, allowing you to find better coverage at a more competitive pricing.

However, remember that you must thoroughly assess other options before deciding to make the switch. Only if another insurer offers a better deal or improved service should you opt out of your existing coverage.

Also read: 8 essential tips to choose the right health insurance

This article was originally published on February 20, 2025.