What do we do if we don’t like the network service of our phone. Previously, we used to change numbers but now we are using number portability to change networks. This facility is not just limited to SIMs but a health policy can also be switched to another company if you don’t like the services of the existing one.
IRDA facilities this portability of changing our insurance provider. This can be done at the time of renewal and is called insurance portability.
Time taken for portability:
· The company you want to port to has to be informed at least 45 days before the renewal about the switch.
· The new company will contact the existing insurance company within 7 working days.
· The older company has to provide the newer one with details within 7 working days.
· The newer company will have to inform the customer if it agrees or not for the portability within the next 7 days.
· If there is no response from the company after 15 days, it has to be deemed that the company agrees for porting and it loses the right of rejecting the policy afterwards.
· Policy documents.
· Premium payment receipts.
· Documents regarding claim.
· Any other documents that the new company may ask.
Some changes are not applicable
· You can avail the benefits similar to the older company from the new company. For example if the outgoing policy is mediclaim type, we can get only mediclaim policy in the new company.
· Though there is scope for transferring benefits already accrued to the new company, everything cannot be exactly same.
· If waiting period is over through the previous company for preexisting diseases, it is considered as done and if partially done, the remaining is done at the newer company. If premiums are paid on time without fail, the new company will show interest for port.
· No-claim bonus is added to sum assured and premium with respect to that is collected. For example, a person has 3-lakh loan and got 20% bonus and the total is considered as the insured amount of 3.6 lakhs and premium related to that is collected.
· There is waiting period for 30 days after taking a policy.
Premium should not be the sole criteria
· It is not a given that the new company agree for the port. It has every reason to reject if the premiums are not paid properly or due to health.
· Don’t think that the new company will collect the same premium as the previous one. It may be higher or lower based on their policies.
· It is recommended to change company just for premium. Always change only if you feel the services are not good, hospital network is not sufficient or if you are confident that the new company provides better services.