From benefits to requirements; All you need to know

Insurance coverage in India is a concept that allows policy holders to switch from one insurer to another without any hassles. It was introduced by the Insurance Regulatory and Development Authority of India (IRDAI) with the aim of providing more flexibility to policyholders.

Insurance flexibility allows policyholders to transfer their existing policies, with all benefits and features, to a new provider. This means that policy holders can get the same benefits even after switching insurance companies. The process of submitting an insurance policy is simple and hassle-free. Let’s go through the process in detail.

How to set up your insurance policy?

As a first step, the policy holder needs to fill an online form on the IRDAI website. After completing and submitting the form, the current insurer will be notified of the application. The insurer is now required to provide the policyholder with all information related to the policy. It includes details of premium, policy term, sum assured and other important information.

Once this information is provided, the policyholder can contact the desired insurer. The new underwriter will then verify the details of the current underwriter and underwriter. If the details are found to be correct, the new insurer will accept the proposal and issue the policy to the policyholder.

What are the guidelines for submitting your insurance policy?

  1. If a person decides to switch health insurance providers, he must give written notice to the current insurance provider of his decision and name the new provider.
  2. In addition, they must submit a portable application to the new insurance company at least 45 days before their current policy expires.
  3. Policy holders must regularly update their health insurance plans so that portable options are accessible. However, this will not be treated as a burglary policy and shipping may be allowed if the policy is terminated due to delay by the insurance company.
  4. The applicant is given a period of 30 days for the renewal of the policy if the shipment procedure is still in progress or the decision of the new insurer is pending.
  5. To get this extended coverage, the policyholder must pay the insurer a current amount instead of the annual premium.
  6. An individual must complete the entire waiting period, minus the elapsed time of the previous policy, if switching to a new insurer with a longer waiting period than the previous policy.
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What are the benefits of transferring your insurance policy?

Transferring your insurance policy can have several benefits, depending on your situation.

First, porting gives policyholders more flexibility and control over their insurance coverage. This allows them to transfer their policy to another insurance without having to go through the entire process of researching and selecting a new policy. This can save time and money, and help make sure they get the coverage they need.

Second, it allows policyholders to maintain their existing terms and conditions. This means they don’t have to worry about changes in coverage or premiums when they transfer their policies.

This also means that they can maintain the same deductible and benefit levels, as well as the same exclusions and limits. This is especially beneficial for those who have established loyalty over time with their current insurer.

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Another benefit of porting is that policyholders can access better deals. By transferring their policy to another insurance provider, they may be able to secure lower premiums and other discounts that are not available from their provider. This can help reduce the cost of their coverage.

Finally, porting can provide peace of mind for administrators. Knowing that they can easily transfer their policies between different insurers gives them more control over their insurance needs and can help them feel more secure.

Also speaking about this, Ajay Shah, Director & Head of Marketing Care Health Insurance He said, “The portability guidelines from IRDAI will enable policyholders to opt for their preferred policy without worrying about losing their policy benefits. health insurance may bring additional benefits; You can upgrade to products with better features and services from other insurance providers, get attractive premiums and improved services, all this will not be lost in ‘the continuation of the waiting period for pre-existing conditions obtained from the previous provider.”

“Some insurance providers give you a choice of their benefits and other benefits after submitting them to the plan / product. To apply for a health insurance policy, you need to apply at least 45 days before the date “the reform of the premium,” he said.

Can the insurance provider deny your claim?

Pre-existing condition

Most health insurance will not accept an application as portable if the applicant has a pre-existing condition. A pre-existing condition is an illness or medical condition that existed before applying for insurance. These include everything from diabetes to cancer and even health problems. Many insurers consider these terms too expensive.

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Cost of coverage

In some cases, insurers may deny coverage because the cost of coverage is too high. This is especially true for people who are elderly or have complex medical needs. Health insurance companies must calculate the cost of coverage for each individual and decide whether the cost is worth it or not. If the price is too high, the insurer may refuse portability.

Waiting period

Insurers may require a waiting period before a person can apply for transportation. The waiting period can range from weeks to months, depending on the insurer. During this time, the insurer will review the person’s medical records and other information to determine the level of risk. If the risk is too high, the insurer may refuse coverage.

Wrong information

When applying for portability, it is important to provide accurate and up-to-date information. Insurers may reject applications if they find incorrect or outdated information. This may include inaccurate information about medical history or current medications. Providing incorrect or out-of-date information may lead to the rejection of the transmission.

Insurance flexibility is a great way for policyholders to switch between different insurance providers and get better deals and coverage. However, it is important to understand the guidelines, benefits, and potential denials that may come with submitting your policy. By following these guidelines, policyholders can ensure that their application is successful and enjoy the insurance coverage they desire.

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First published: 25 Jan 2023, 08:05 IST

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