Skip to main content

What you need to know about Health Insurance Portability ?

What does 'Health Insurance Portability' mean?
Health Insurance policy holders, who are not satisfied with the services of the present provider, will be able to switch/change their service provider without losing the basic coverage of health insurance.
As per IRDA portability rules, consumers will get credit for the time already spent for covering the pre-existing disease along with bonus accrued to him from his past insurer.

What all benefits you can shift under 'Health Insurance Portability'?
Health Insurance Portability allows you to shift from one health insurance provider to another, without having to lose any of the benefits that your current health insurer provides. It includes -
1. The credit from the waiting period already completed can be carried forward to the new insurer.
2. Any bonus accrued to him (insured) from his past insurer.
3. The new insurer will provide some cover, at least up to the cumulated sum assured in the old insurance policy.

What happens if the customer applies to the new insurer does not have a similar policy?
If the new insurer does not have a similar policy, the policyholder will have to purchase one with a higher sum assured. Suppose a person with insurer A has a sum insured of Rs 3 lakh. When he shifts to insurer B. However, if insurer B has no product offering Rs 3 lakh as sum insured, he will have to offer the nearest higher slab of, say, Rs 4 lakh. While the premium will be charged on Rs 4 lakh, the portability benefits will be limited to Rs 3 lakh.

What happens if the customer applies for an increased sum insured in the new ported policy?
If the customer has a policy of sum insured of Rs. 4 Lakhs, and now he/she wants to port the policy to another insurance company with a higher sum insured of Rs. 10 Lakhs. The portability relief in waiting periods in the new policy would only be to the extent of Rs. 4 Lakhs sum insured. The waiting periods for the additional sum insured of Rs. 6 Lakhs would similar to a fresh policy.

What happens if the customer has holding an old policy for two years (which has waiting period for pre-existing conditions for 4 years)?
The policyholder will be able to carry over the waiting period with respect to pre-existing ailments. The waiting period for most pre-existing conditions is four years. So, say, the person wants to shift after a year itself. His waiting period for the pre-existing ailment will be three years with the new insurer.

I have bought a policy of sum insured of 2 lakh, a few years back and have cumulative bonus of Rs. 50,000; what would be the new sum insured after porting the policy to new insurer – 2 lakh or 2.5 lakh?
It would be 2.5 Lakh. For example - A person with insurer 'X' has a sum insured of Rs 2 lakh and cumulative bonus of Rs 50,000. When he shifts to insurer 'Y' his sum insured will automatically beRs 2.5 lakh. However, if insurer 'Y' has no product offering Rs 2.5 lakh as sum insured, it will have to offer the nearest higher slab of, say, Rs 3 lakh. While the premium will be charged on Rs 3 lakh, the portability benefits will be limited to Rs 2.5 lakh.

I have a health insurance policy from life insurer e.g. LIC; can I switch my policy under 'Health Insurance Portability'?
Currently, Health insurance portability will be limited ONLY to non-life insurers .

I am currently covered under Group Health Insurance Policy of my company; can I switch my policy under 'Health Insurance Portability'?
Currently portability will be allowed ONLY to individual health policies, which also includes family floater policies. For policyholders covered under Group Health Insurance policy first have to shift to individual health insurance to same insurer (from where they are covered under group policy) then in future they can port their policy to new insurer.

What things one need to watch out for?
The following are some of the conditions for which you should watch out, while switching your health insurance policy –
1. Maximum renewable age - Certain policies do not let you renew them after you reach a certain age.
2. Exclusions - Not all policies are same; certain exclusions are there in each policy. Check each one of them before you should switch.
3. Moving job - If you are moving jobs, then you can take advantage of portability.
4. Not all benefits continue - Not all policies are same; so check that all benefits that you are looking for are there in new policy.
 
Download Tax Free IDFC Long Term Infrastructure Bond and L&TLong Term Infrastructure Bond below:
 
 

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

Perpetual SIP - Its Advantages

Retail investors have taken a fancy to investing in mutual funds through systematic investment plans (SIPs). As per industry estimates, Rs 4,000 crore flows into SIPs every month. One way to take advantage of SIPs in a true long-term manner is to opt for a perpetual SIP 1. What is a perpetual SIP? In an SIP , you make periodic investments in a mutual fund scheme of your choice generally every month for a pre defined tenure. While signing up an SIP mandate , you have the option to leave the end-date column blank. If the column is blank, it means the investor has opted for a perpetual SIP . Most fund houses assume this SIP will continue till December 2099 unless you give a written communication to stop it. However, some fund houses require you to tick the `perpetual option'. 2. What are the advantages of perpetual SIPs? Registering an SIP involves a lot of paperwork and it takes time. It is observed that many investors skip their SIP instalments when they go for short-tenure option...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now