Has the health insurance premium increased? Port to a new health insurer
Has the health insurance premium increased? Port to a new health insurer | & nbspPhoto credit: & nbspBCCL
New Delhi: After the entry into force of the standards mandated by the insurance regulator (IRDAI) on the standardization of health insurance exclusions from October 1, 2020, several policyholders complained of huge premium increases.
In a circular dated March 16, 2021, addressed to the CEOs of all general and autonomous health insurance companies, IRDAI informed that it had added additional standards in addition to the standards specified in clause (C) of the chapter III of the general guidelines and health insurers must comply with them when modifying existing products.
According to the new standards, general and health insurers are not authorized to modify existing services, to add new services to existing products, which leads to the imposition of an increase in the premium. However, it is clarified that insurers are authorized to make minor modifications as stipulated in clause (G) of chapter III of the consolidated directive on the filing of products in the health insurance sector.
Several policyholders have seen their renewal premiums climb from 30 to 100% in some cases in recent months. With the second wave of the deadly pandemic likely to drive up claims, insurers’ loss ratios are bound to come under pressure.
Dealing with increases in health insurance policies
The Insurance Regulatory and Development Authority of India (IRDA) has come up with a practical method that is a welcome relief for those who are unhappy with their current health insurance providers: the portability of health insurance.
The portability of health insurance allows policyholders to transfer their existing health insurance policies to a new health insurance provider. Portability prevents customers from being taken for granted by insurance companies, gives them flexibility, and provides better and more options.
The best part about the portability of health insurance is that customers have the freedom to switch to a better health insurance provider, without having to worry about losing any accrued benefits from the previous policy. The policyholder can also postpone the waiting period for coverage of pre-existing illnesses.
When do you have to move?
First of all, remember that you can only relate to a similar policy. So while you can go from an individual plan to a floating family policy or from a general insurer to a health insurer, you cannot go from an indemnity plan to a critical illness plan. Then think about why you want to move.
How to wear your health policy
1. Start the porting process at least 45 days before renewing your existing policy. Do your research well before you transfer to the new policy.
2. Complete the proposal form and the portability form available from the new insurer. This will require your personal information and medical history with pre-existing conditions and previous claims.
3. Submit the relevant documents, which may include:
- Completed the proposal and portability forms.
- Proof of identity and residence.
- Medical history, previous claims and newly diagnosed illness, if applicable.
- Police certificates from previous years.
- Latest renewal notice indicating continuity of coverage and other details.
- Self-declaration in case of non-complaint.
- Investigation report, discharge summary and other documents in the event of a complaint.
4. The relevant data will be published on the official Irdai portal and the existing insurer will have to provide the information regarding your medical history and your claims to the new insurer. This is why you do not need to inform your existing insurer about the porting because they will know it automatically once it is put on the Irdai portal and information is sought.
5. After receiving all the details, the new insurer must take out the proposal and inform the policyholder within 15 days. If not, the policy is automatically considered accepted.
6. There are no additional portability costs, only the premium, which may increase depending on the sum insured, the state of health and the history of claims. If you are over 45 or have a medical condition, you will need to undergo a pre-policy medical exam.