The Significance of Portability Feature in Health Insurance Plan
When it comes to being healthy, a health insurance plan can make a difference in everybody’s life. It assists people in getting the best treatment and medication at lower expenses through the cashless or reimbursement feature to a certain extent. The limit is set based on the premium amount, paid by the policyholder. But, no matter how hefty premium plan a customer is paying, several factors can prevent him from availing the policy to the fullest. Here are some common causes behind the health insurance portability:
1.Bad service quality
2.Increased premium
3.Co-payment clauses
4.Lack of transparency
5.No better insurance offers
6.Late or no reimbursements
7.Insufficient cover for diseases
However, if these reasons make anyone think to leave the insurer, there is a solution for this, which is called a health insurance portability feature. It allows the customers to change their insurance providers without losing the accrued benefits from the current plan. Under this segment, the customer can also get the waiting period for the coverage of pre-existing ailments transferred.
What is the process of portability?
A customer can opt for the portability facility only when his/her current policy is up for the renewal. To initiate this process, the policyholder needs to apply to the insurance company at least 45 days before the premium renewal date of the existing plan. In case of a late application, the insurer will have the authority to accept or reject the request of the customer.
However, the insurance firm on receiving the application seeking portability from the customer is supposed to issue a proposal sheet, portability form and details of several offering provided by them. Getting these forms filled will allow the insurance company to know the medical history and claim records of the policyholder with the current insurer. After that, the existing insurer is required to share the details with the new insurer via a common data-sharing portal built by the IRDA.
After receiving all the details, the new insurer has to decide about the underwriting the scheme within 15 days. Failing to do so will bound them to accept the offer.
What points make portability facility special?
Apart from making the customer get rid of a troubled insurer, there exist some other importance of portability feature. Some of them are as follows:
A)Under this feature, the customization is allowed where customers could modify their existing plans according to their health condition, need, lifestyle, and so on. This includes the choice for an additional cover, adding new nominees etc.
B)During the portability process, the current insured sum can be clubbed with any bonus amount accrued for getting the new insured sum. This also includes the no claim bonus(NCB).
C)The competition is on the rise these days, and no company would like to see their policyholders shift to different insurers. Thus, sometimes to retain their customers, companies are ready to offer an exciting range of benefits at lower premiums, at the time of portability request.
D)Another reason to opt for the portability is that it doesn’t affect the older policy of the policyholder. The process focuses on the shift of the insurer, and it also eliminates the worry of time-bound exclusions.
Hence, the health insurance portability feature is a simple solution to many problems that evolve due to the rise of dissatisfaction in the customer’s mind for his/her existing insurer.
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