There have been several representations from consumer associations and policyholders for enabling portability of health insurance policies from one insurer to other insurer.  Persons shifting from one region to other regions are many times put to disadvantage due to lack of insurers’ office providing necessary policy servicing at the new location.  Further, employees shifting from one organization to another organization many times lose health insurance cover due to lack of portability of the health insurance policies.  It is essential to protect the policyholders against discontinuity and consequential loss of Pre Existing Diseases (PED) cover by making the health insurance plans portable across the insurance companies.  The portability will also ensure that the policyholder is not tied to one single insurer throughout his life for fear of losing the cover of PED.

The Authority has examined various issues involved in the portability of health insurance plan and has issued necessary orders for effecting portability which will be implemented from 1^st July, 2011.  The main features of portability are :

1.     The credit from the period elapsed excluding PED shall be carried forward to the new insurer.

2.    The accepting insurer shall provide cover, atleast upto the sum assured in the previous insurance policy.

3.    The request for porting the policy shall be completed as per the timelines prescribed in the IRDA (Protection of Policyholders’ Interests) Regulations and guidelines.

The Authority is making the policy wise claim history of the health insurance policies available to the insurers for effecting quick portability from 1^st July, 2011. 


Sd/-
(J Hari Narayan)
Chairman