Portability helps a customer only, as long as the health insurance policy is profitable for the company, that is, the customer has been paying premium regularly and has not filed any claims
Ask anyone who has received mediclaim reimbursement, and they will tell you it's a massive hassle. Now mediclaim policyholders are slowly but surely waking up to the benefits of health insurance portability that allows one to switch from one insurer to another and still get credit on continuity of the coverage. Industry data collected by DNA Money shows that over 1 lakh health policies were ported into private insurance companies in the last fiscal, with a large portion of such policies coming out of the four PSU insurers.
According to Ashish Mehrotra, MD & CEO, Max Bupa Health Insurance, health insurance portability has changed the dynamics of medical insurance as it has provided greater choice to customers to move to a provider that offers the best product, be it in terms of product features and coverage or price.
Anand Roy, joint executive director, Star Health and Allied Insurance said the company has got 58,705 inward policies in FY17. "We have welcomed most wanting to switch over to us. Many customers are porting out their old policies from PSUs to ensure they get best in class experience and full coverage," he added.
CEO Antony Jacob of Apollo Munich Health Insurance, which saw 21,000 inward policies, says that portability in health insurance has given freedom to the customers to move their policies from one insurer to another, in situations where a customer is dissatisfied with his or her insurer. Unpleasant episode with their current insurer including reasons like denied claims are big triggers.
Companies like Universal Sompo and Royal Sundaram saw 2,000-2,500 policies being ported in, and those like Max Bupa and Future Generali India Insurance saw 10-12% of total policies being ported in.
M Ravichandran, president – insurance, Tata AIG General Insurance said about 70% of the cases are being ported from the 4 PSU insurers. However, portability could increase manifold in future if certain changes happen. "One of the main reason for low portability is customers normally realise the need to port after a claim is made. Given that most claims are made due to lifestyle ailments, the new insurers may refuse portability as their underwriting criteria may kick in. Besides this agents not getting remuneration for portability cases is also another reason for low portability," Ravichandran said.
Portability helps a customer only, as long as the health insurance policy is profitable for the company, that is, the customer has been paying premium regularly and has not filed any claims. Rajiv Kumar, MD & CEO, Universal Sompo said: "Till this point, every insurance company is good to the insured. If there is no claim, there cannot be any dispute. This case becomes even more difficult for senior citizens, who are already seen as a high-risk category."
Shreeraj Deshpande, head of health insurance, Future Generali India Insurance, said the customer should be aware of the product and its terms and conditions where he/she is interested in porting the policy. One needs to check the applicable waiting periods for coverage of pre-existing ailments, specific ailments, general exclusions, any co-pay /sublimates for ailment/ deductible applicable, in the new product before porting the policy.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Health insurance")
)
Companies like Universal Sompo and Royal Sundaram saw 2,000-2,500 policies being ported in, and those like Max Bupa and Future Generali India Insurance saw 10-12% of total policies being ported in.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}