Thinking of Changing Your Health Insurance Company? Read This Before You Port Your Policy

You have had the same health insurance policy for years

Then you discover another insurer offering a policy that appears to have better features, a wider hospital network or a different premium.

The obvious question is: "If I change my insurer, will I lose everything I have accumulated with my current policy?"

Not necessarily. Health-insurance portability allows eligible policyholders to request a transfer of their health-insurance policy from one insurer to another, subject to the applicable rules and the terms of the new policy.

But portability is not simply: "Take my old policy and move it to the new company." There are important things you should understand before making the decision.

What exactly is health-insurance portability?

In simple terms, portability allows you to move your health-insurance policy from your existing insurer to another insurer while seeking continuity benefits available under the applicable portability rules.

IRDAI's health-insurance framework provides for portability and sets out the process and continuity-related provisions.

The important word here is continuity. If you have already completed applicable waiting periods under your existing policy, certain continuity benefits may carry forward when the policy is ported, subject to the applicable rules and the new policy's terms. That is one of the biggest reasons portability exists.

Why would someone want to port a health-insurance policy?

There can be several legitimate reasons.

• You are unhappy with the service — perhaps you have had difficulties with customer service or claim servicing.
• Your current policy no longer suits your needs — your family circumstances may have changed, or you may now need higher coverage or different features.
• You want different policy features — you may find another policy whose structure better matches your requirements.
• Your hospital preferences have changed — the network hospitals available to you may be an important consideration.
• You want to review your options at renewal — renewal is often a natural point to review whether your existing policy still makes sense.

A lower premium alone is not necessarily a good reason to switch

But here's the important part: a lower premium alone is not necessarily a good reason to switch.

Does portability mean you start from zero?

This is one of the biggest misconceptions. Portability is designed to provide continuity benefits under the applicable regulatory framework.

For example, if you have already completed certain waiting periods under your existing policy, the applicable continuity benefits may be considered when you port to another insurer.

However, this does not mean every feature of your old policy automatically transfers unchanged. The new policy has its own terms and conditions, coverage structure, exclusions, limits, waiting periods, premium and eligibility requirements.

So don't think of portability as simply changing the logo on your existing policy. You are moving to a different insurance contract.

What happens to your accumulated waiting-period credit?

This is where portability can become particularly important for long-term policyholders. Imagine you have held a health-insurance policy for several years, and you have already completed applicable waiting periods for certain conditions. You now find another policy that appears more suitable.

The question becomes: "Will I have to complete those waiting periods all over again?"

Portability rules are designed to provide continuity benefits for applicable waiting periods, subject to the regulatory framework and the terms of the new policy. But don't assume that every waiting period, benefit or condition transfers in exactly the same way. Check the actual terms before switching.

Portability doesn't mean the new policy will be identical

This is where people sometimes make mistakes. Suppose your current policy has a ₹10 lakh sum insured and the new policy also has a ₹10 lakh sum insured. It might look like an identical replacement.

But the two policies could still differ in a number of ways.

• Room-rent provisions
• Co-payment
• Sub-limits
• Exclusions
• Restoration benefits
• Deductibles
• Network hospitals
• Coverage conditions
• Other policy-specific features

Compare the structure of the coverage, not just the sum insured

So comparing only "₹10 lakh vs ₹10 lakh" isn't enough. You need to compare the structure of the coverage.

Should you port just because the new premium is lower?

Be careful. A lower premium can look attractive. But ask: why is it cheaper? Does the new policy have different coverage, conditions, limits, deductibles, co-payment, benefits or eligibility criteria?

A health-insurance policy is not simply a price tag. You're buying financial protection under a specific set of contractual conditions. The cheapest policy isn't automatically the most suitable policy.

What about your existing medical conditions?

This is particularly important for people who have been insured for several years. If you have developed medical conditions since purchasing your current policy, don't assume portability makes those conditions irrelevant.

The new insurer will assess the portability request according to the applicable regulatory framework, underwriting processes and policy terms. That is one reason why you should never hide or misrepresent medical information when applying for insurance.

If you're considering portability, provide accurate information and understand what the new insurer is actually offering.

When should you think about portability?

Don't wait until the last possible moment. Portability is associated with the renewal process and has specific timelines and procedures.

The safest approach is to start exploring your options well before your renewal date, rather than discovering a potentially better alternative when the renewal is already due. Check the current IRDAI rules and the applicable insurer process for the relevant timelines before initiating a portability request.

7 questions to ask before porting

• 1. What exactly am I unhappy with in my current policy? If you can't answer this, you may be switching simply because another policy looks attractive.
• 2. What will I gain from the new policy? Don't look only at premium.
• 3. What will I lose? Check limits, exclusions, co-payment, deductibles and other conditions.
• 4. What continuity benefits apply? Understand exactly what will carry forward under the applicable portability provisions.
• 5. Are my preferred hospitals available? A policy can look excellent on paper but may be less convenient if the hospitals you prefer aren't available under the applicable network arrangements.
• 6. How will my existing medical information be treated? Be completely transparent.
• 7. Have I compared the actual policy documents? Brochures and summaries are useful, but the policy wording is what deserves your attention.

One mistake you should avoid

Don't cancel your existing policy first and then start searching for a replacement. The decision to port should be made through the proper process.

You don't want to create an unnecessary gap in your insurance protection because you assumed the new policy was already secured. If you're considering a switch, understand the portability process and make sure you know the status of the new policy before taking action on the existing one.

Portability isn't always the answer

Sometimes the best decision may be to stay with your existing policy. Your current policy may already have valuable continuity, suitable coverage and conditions that work well for your circumstances.

Other times, you may discover genuine reasons to consider another option. The point isn't "always port" or "never port." The point is: understand what you currently have before deciding what you should change.

A simple comparison you can do before renewal

Take your existing policy and the alternative you're considering. Compare the following for both:

• Sum insured
• Room-rent limits
• Co-payment
• Waiting periods
• Major exclusions
• Sub-limits
• Deductible
• Restoration benefits
• Network hospitals
• Premium
• Other important conditions

The premium is one part of the decision, not the entire decision

Don't choose based on the last row alone. The premium is one part of the decision — not the entire decision.

The most important question

Before asking "which insurer is cheaper?" ask: "what exactly am I getting, and what am I giving up by changing?" That's the question that can prevent a rushed insurance decision.

Not sure whether you should continue or review your existing policy?

You don't have to make that decision based on the premium alone. You can request a Free Health Policy Review to help you understand important features and conditions in your existing policy. We'll focus on understanding the policy — not simply looking at the sum insured.

Want to start without sharing your contact details? Try the BimaParichay Health Insurance Coverage Estimator for an indicative educational estimate of the level of coverage you may wish to review.

Important

This article is intended for general insurance awareness and educational purposes. Portability, continuity benefits, eligibility, underwriting, coverage, exclusions, waiting periods and other conditions are governed by the applicable regulatory framework and the specific policy terms and conditions. This article does not recommend any particular insurer or insurance product and does not guarantee acceptance of a portability request or claim.