Insurance regulator development authority (IRDA) on Thursday gave its go ahead to introduce health insurance portability from 1st July 2011
Mumbai: Disgruntled policy holders can now swap their insurers just the way mobile users can switch to a rival service provider to get better services. Insurance regulator development authority (IRDA) on Thursday gave its go ahead to introduce health insurance portability from 1st July 2011.
The regulator after receiving several representations from the customer association and policyholders issued guidelines by approving portability of health insurance policies from one insurer to other insurer.
All policies shall allow for credit gained by the insured for pre existing conditions in terms of waiting period when he/she switches from one insurer to another or from one plan to another, provided the previous policy has been maintained without break. The credit would be limited to the sum assured under the previous policy.
Current status
As of now, policyholder can take a health cover for a year which is required to be renewed every year. The policy holder can accumulate the bonuses received if there is no claim for each year. If the policyholder intends to switch to another insurer for better service, his accumulated bonuses and the pre existing disease waiting period cannot be carry forward and the policyholder is left with no option but to start the entire process again.
The portability option will ensure insurance companies to come out with more cost competitive schemes and provide quality services in order to retain their existing policyholders.
General Insurance industry collected Rs. 4,869 crore health insurance premium, an increase of 42 per cent during April-September 2010 as compared to previous year. New India Assurance leads the market with 22 per cent in health insurance sector followed by United India and ICICI Lombard as per IRDA data.