What is the status of health insurance portability?
PORTABILITY
Nearly all of us are aware about Portability – thanks to Mobile number portability. Similar to mobile portability, IRDA has asked all Private Insurance Company to introduce Health Insurance Portability w.e.f 1 Jul 2011. Presently only Apollo Munich allows portability of Health Insurance i.e. it will consider Health Insurance of other companies which are running at time of taking/renewing Health Insurance policy from Apollo Munich.
Let us understand what does portability mean. As already explained, when one takes fresh Health Insurance there is warming up period (i.e. waiting period of 0 to 90 days before accepting hospitalization claim due to illness) and there is waiting period of 3 to 4 years for PED. In existing policy insured might have cumulative no claim bonus (NCB). While new guidelines are still awaited, presently Apollo allows you to transfer your existing No Claim Bonus @ of 5% for every claim free year (maximum up to 20% even though you might have accumulated 50% of NCB) and it waive of warming up period (of 30 days). However the waiting period of Pre Existing Disease will remain for minimum one year (even if the policy has remain in force continuously for two years from previous insurer – subject to submission of proof like renewal notice or policy documents). Therefore, in case the policy is enforce for less than 2 years, then PED waiver will start after completing the balance period with Apollo Munich.
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