How to Switch from One Health Insurance Company to Another?

In the modern world, filled with opportunities, the more options we have, the better our choices become. Health insurance plans are no exception. The portability factor enables an existing health insurance policyholder to switch between insurers while retaining the accumulated benefits. 

This guide will teach us how to switch an existing health policy while ensuring a smooth transition with no additional waiting period. 

What is Health Insurance Portability?

Health Insurance Portability is switching from one health insurance provider to another without losing your collected benefits. You can apply for portability 45 days before your health insurance plan expires.

Moreover, your new insurer will offer you a health insurance policy similar to or better based on your current one.

How to Switch a Health Insurance Company

The Insurance Regulatory and Development Authority of India (IRDAI) has structured a series of steps for individuals wanting to change their health insurance provider. Here, you can refer to the procedure:

Step 1: Apply in Advance

You must start the portability process by submitting your application form at least 45 days before your plan expires. Many people do not adopt this proactive approach; thus, they do not get enough time for the transition, and last-minute hurries often result in lapses in coverage. 

Step 2: Go Through the Available Plans

After seeing your interest, the insurance company will present you with the necessary forms for the appropriate health insurance policies. All the plans will have different clauses, coverage amounts and premiums. Thus, you must carefully read the policies and consult with one of the company's agents to clarify specific areas. 

Step 3: Select an Insurance Policy

When selecting a health insurance plan, you must compare your needs with the policy features. If the benefits align with your requirements, upload the listed documents and accurately provide all the personal and contact information. Some mandatory requirements include a PAN card, policy documents, and additional relevant paperwork.

Step 4: Go Through the Evaluation Period

Once you have provided all the documents, your preferred insurance company assesses every minute detail, including your medical and previous claims records. Either they obtain such information from your existing insurance provider, or you are asked to provide accurate details via a data-sharing portal. 

Step 5: Wait for the Insurer’s Decision

Almost any insurance company starts evaluating a new portability request within 15 days of receiving a fresh application. After analysing the details provided, they determine whether your request for a particular coverage policy can be accepted. To guarantee a prompt and well-thought-out response, you can port your health insurance plan at least 45 days before it expires.

Mandatory Documents Required for Health Insurance Portability

Compiling a specific document list is crucial when shifting from one insurance company to another to ensure prompt approval. Consider effectively communicating with your existing and preferred insurance providers to facilitate error-free porting. 

Generally, the following documents are asked for during the porting procedure:

• Identity Proof Documents- Under this segment, you are typically asked to present any government-issued identity proof document. This can be your passport, Aadhaar card, voter ID card, or other valid identification proof. 

• Address Proof Documents- You must also upload permanent and current valid address proof documents. Some accepted paperwork for this field includes rental agreements, ownership documents, government-issued residential certificates, or any utility bill, such as a gas or electricity bill. 

• IRDAI Portability Form- Regardless of your chosen insurance company, the IRDAI has specified a prescribed portability application form format. You must review and fill out all its necessary fields to effectively transfer your health insurance policy to a new provider.

• Proposal Form- Every health insurance policy mandates a proposal form as essential while porting. It outlines an applicant’s health records, current coverage particulars and the proposed terms for the new health policy. 

• Current Insurance Policy- It is crucial to present a digital copy of your current health insurance policy to the new insurer. This gives them a fair ground to evaluate your current list of benefits and propose better terms. 

• Relevant Medical History Documents- Depending on the data provided, your insurance company’s agent will contact you to request certain medical documents. This can be previous prescriptions, test reports, or other medical records. 

In addition to the abovementioned documents, an insurance company can ask for claim history documents and no claims declaration whenever applicable. 

Is There a Chance When Your Portability Request May Get Rejected?

An insurance provider can cancel a portability request for several reasons. If you face such a scenario, it is important to find out the underlying reasons to avoid similar experiences in the future. 

The following are a few possible reasons that may act as hurdles when it comes to porting approval:

1. Delayed Responsiveness and Document Submissions

Punctuality plays a crucial role in the portability process. For the transfer to take place smoothly, you, as a policyholder, must communicate with the new insurance company within a certain period. Not adhering to this duration can lead to a rejection.

2. Insufficient Information

Lack of information may also result in rejection during the portability process. So, if there are any issues when submitting your application, you should call the insurance company's customer service line immediately to correct them. It is necessary to complete all necessary information truthfully to get a better look at the reconsideration.

3. Claim History Disparities 

Discrepancies in the claim history often serve as the major reason for a refusal. This is because insurers expect accurate claim records and truthful statements from the policy seeker. Hence, to ensure approval, consider checking your claim history more than once. It will help you share your actual experiences regarding your health. 

To sum up, everyone needs to take advantage of health insurance portability as their needs evolve. However, the complexities involved in the process and the underwriting considerations emphasise the need for thorough evaluation. 

Moreover, you can get help from agents of the concerned insurance company who can assist you in completing the whole process.