India News: Health:

From today, health insurance portability is a reality

ENS Economic Bureau============================================================Posted: Sat Oct 01 2011, 01:17 hrsNew Delhi:
After your mobile number, it is now the turn of your health insurance to go portable. Starting today you can change your health insurer without having to lose any benefits that your current insurer provides.

According to the Insurance Regulatory and Development Authority (IRDA) guideline earlier this year, health insurance portability was slated to start on July 1, but was postponed to October 1. Industry experts believe that this would increase competition amongst health insurers and improve their service levels.

“Health insurance portability will enable policyholders to avail continuity in their cover, in case they decide to change their insurer, without losing any credit or benefit for the period of cover with the existing insurer”, says Neeraj Basur, CFO, Max Bupa Health Insurance.

Under the portability regime, pre-existing diseases (PED) are transferable. This comes as a respite to policyholders who bear with deficient service for fear of losing their PED cover.

Also, if the customer shifts to a location where new insurer does not have an office, s/he has the luxury to continue with the new insurer.

Portability will mean greater competition within the health insurers to retain customers which will compel them to constantly improve their efficiency standards in terms of customer engagement and relationship along with the service levels.

“Now a customer has options to choose from best available product in terms of feature as well as price in the market. This would force insurers to innovate and customise their offerings in order to retain as well as attract customers”, said Sanjay Datta, head customer service, Health and Motor, ICICI Lombard GIC.

Before one decides to switch their health insurer, it is important to bear two points in mind: One, the existing health cover must be valid at the time of switching over, and two, the process has to be done before the expiry of the current policy.

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