Health insurance portability allows you to transfer your health insurance policy from one insurer to another without losing key benefits such as waiting period credits and no-claim bonuses. It ensures policyholders are not locked into a single insurer and can switch to a better plan without losing coverage advantages.

This guide will explain:

• How health insurance portability works
• The process to port a policy
• What happens to waiting periods, benefits, and claim history
• The importance of including portability in your policy

1. What is Health Insurance Portability?

Health insurance portability allows policyholders to switch from one insurer to another while retaining benefits such as completed waiting periods for pre-existing conditions and accumulated no-claim bonuses.

This was introduced by IRDAI (Insurance Regulatory and Development Authority of India) to ensure that customers are not stuck with an insurer that does not meet their needs.

Key Benefits of Porting a Policy:

✔ Retain the waiting period credit already completed under your previous insurer.

✔ Transfer your no-claim bonus to the new policy.

✔ Upgrade to a better plan or insurer without losing benefits.

✔ Maintain continuous coverage without a break.

2. How Does Policy Portability Work?

When you port your health insurance policy, the new insurer must honor the waiting period you have already completed under the old policy.

Example of How Waiting Periods Are Retained

• If your current policy has a 3-year waiting period for pre-existing conditions and you have completed 2 years, your new insurer can only impose 1 more year of waiting instead of restarting the full period.
• The new insurer will assess your medical history, claim history, and policy type before approving the portability request.

3. Step-by-Step Process to Port a Health Insurance Policy

Step 1: Notify Your Current Insurer

• Inform your existing insurer at least 45 days before renewal that you intend to port your policy.
• You cannot port a policy mid-term. It must be done only at renewal.

Step 2: Choose the New Insurer and Policy

• Compare insurers and choose a policy that offers better coverage, lower premiums, or improved benefits.
• The new insurer must offer at least the same sum insured as the old policy, but you can opt for a higher sum insured if required.

Step 3: Submit Required Documents

• Fill out the portability request form and submit:
• Copy of your existing policy
• Medical history and claim records
• No-claim bonus certificate (if applicable)
• Policy renewal notice

Step 4: Waiting Period & Claim History Evaluation

• The new insurer will access your claim history and policy details through the IRDAI portal and decide whether to accept or reject your request.
• The insurer must communicate their decision within 15 days of receiving all documents.

Step 5: Approval and Policy Issuance

• Once approved, the new insurer will issue your policy without resetting the waiting period for pre-existing conditions.
• If your request is rejected, you can renew your policy with your existing insurer without losing coverage.

4. What Happens to Your Waiting Periods and Claim History?

When you port your policy:

• Waiting period credit is retained – The new insurer must reduce the waiting period by the time already served with the previous insurer.
• No-claim bonus is carried forward – Any accumulated no-claim bonus (which increases the sum insured without raising premiums) will be added to your new policy.
• Claim history is assessed – If you have had multiple claims or high-risk conditions, the new insurer may reject your portability request or increase premiums.

5. What to Consider Before Porting a Policy?

Not all portability requests are automatically approved. Here are a few factors to consider:

✔ Timing: You must apply for portability at least 45 days before your policy expires.

✔ Premium Changes: The new insurer may increase premiums based on your health status and claim history.

✔ Policy Terms: The new insurer must match your existing sum insured, but other terms such as room rent limits, copay clauses, and exclusions may differ.

✔ Continuous Coverage: There should be no break in coverage, as any lapse can result in the waiting period resetting.

✔ Pre-existing Conditions: If you have chronic illnesses, some insurers may not accept your portability request.

6. When Should You Consider Porting Your Policy?

You should consider porting if:

• Your current insurer has high premiums compared to other providers.
• You are unhappy with claim settlement or service from your existing insurer.
• You want better coverage or additional benefits that your current policy does not offer.
• Your policy has strict conditions like high copays or sub-limits.
• You want to switch from an employer-provided group policy to an individual plan.

You should not port your policy if:

• You have an ongoing claim, as the new insurer may not accept your application.
• You have completed a long waiting period and the new policy has stricter conditions.
• The new insurer does not offer better coverage or a lower premium than your current provider.

7. Is It Important to Include Portability in a Policy?

✔ Yes, including portability is highly important.

• Portability gives you flexibility to switch insurers without losing accumulated benefits.
• If your insurer increases premiums or reduces benefits, portability allows you to switch.
• It ensures continuous coverage for pre-existing conditions without restarting waiting periods.

If your policy does not allow portability, you will be locked into the same insurer, even if you are dissatisfied with their service.

Final Verdict: How Important Is Portability?

• Porting a health insurance policy allows you to switch insurers while keeping waiting period benefits and no-claim bonuses.
• It ensures you are not stuck with a policy that no longer fits your needs.
• Always compare policies, check terms, and apply for portability at least 45 days before renewal.

If you are unhappy with your current insurer, portability is a great option to upgrade your health insurance without losing benefits.