Port your insurance policy to cover home care, consumables: Experts

Around 54 per cent customers in tier 1 cities, 18 per cent in tier 2 cities, and 28 per cent in tier 3 cities ported to a higher health cover

Customers are increasingly opting to port if they are dissatisfied with their current health insurance policies, as a recent pan-Indian survey by PolicyBazaar of 4,500 respondents shows.

With new health policies offering enhanced features being launched at regular intervals, moving makes sense since customers don’t lose out on the benefits accumulated in their old policies.    

Check out policy features

The PolicyBazaar survey found that 63 per cent customers had ported for a better price and higher sum insured, while the remaining 37 per cent had ported for better features and services.

Before porting, ensure you are moving to a policy with the right features.

Amit Chhabra, head-health and travel insurance, PolicyBazaar, says, “The new policy must have a few crucial features — cashless hospitalisation, consumables cover, network hospitalisation, and ambulance cover.”

With cashless hospitalisation, you can get treated at any of the network hospitals without having to worry about cash in hand. Consumables cover reimburses the cost of PPE kits, masks, gloves, oxygen cylinders, ventilators, etc. With ambulance cover, you can avail of this service without a direct financial cost.

Buying a policy that covers home treatment is becoming crucial. M Barve, founder, MB Wealth Financial Solutions, says, “Stay-at-home treatment became very important during the pandemic. Ensure this feature is present in the new policy, as regular monitoring and treatment at home can also result in a hefty bill.”

Remember you can port only between similar health policies, say, from one basic cover to another basic cover, or from one top-up plan to another top-up plan.

Move to adequate sum insured

Around 54 per cent customers in tier 1 cities, 18 per cent in tier 2 cities, and 28 per cent in tier 3 cities ported to a higher cover.  

How much cover you buy should depend on the city you live in and the grade of hospital you are likely to be admitted into. “Individuals living in cities can manage with a minimum Rs 15 lakh cover,” says Barve.

Buy a higher cover if your pocket allows.

Instead of moving to a policy with a higher cover, customers have another option.

Pankaj Mathpal, managing director, Optima Money Managers, says, “A policyholder can also buy a super top-up plan from the same or another insurer.”

Do a cost-benefit analysis of the two options. While a super top-up is a good option, keep in mind that going for a separate policy could mean more paperwork at the time of making a claim.

Approach your own insurer first if you wish to enhance your cover. “Only if you are dissatisfied with your existing insurer’s services, or the existing policy doesn’t have the features you want, should you port to another insurer,” says Mathpal.

Avail of discount on multi-year policy

In the PolicyBazaar survey, 68 per cent customers moved from multi-year to single-year policy tenure, while 26 per cent moved from single-year to multi-year policy tenure. If you pay the premium for multiple years, you can earn a discount. “Gig workers should, if possible, buy a multi-year policy. Those who have regular incomes can also avail of a discount by paying the premium for multiple years at one go,” adds Mathpal.

Apply early

The survey found that 36 per cent of customers had ported in seven days, 19 per cent had ported in 15 days, and 48 per cent had ported in 60 days before their policies expired.

“Apply for porting well before the due date of expiration, so that the insurer gets enough time to review the application,” says Chhabra.

Finally, review the coverage of your existing policy, then assess the sum assured to see if it will be adequate to meet the goal of end-to-end treatment. An ideal health policy, says Barve, must reduce out-of-pocket expenses.