You are here: Home » Companies » News
Business Standard

Health insurance portability will help policyholders

Press Trust of India  |  New Delhi 

With the implementation of health insurance portability service, insurance believe that it would result in better product and services offerings to policyholders.

"This move marks an inflection point in the Indian health insurance industry, and we believe that this will lead to overall improvement in customer service levels," Max Bupa Health Insurance CEO Damien Marmion said.

With the implementation of health insurance portability, insurers will need to enhance their service capabilities and engage in constant innovation to service their existing and potential customers, he said.

It is expected to bring in new benchmarks in delivery mechanisms and product innovation in the industry, he added.

According to Bajaj Allianz General Insurance Company Head (underwriting) T A Ramalingam, portability will trigger a new dimension in service level.

"So now insurers will not only be required to offer the best price but also enhance the service levels. Customers would opt for a change in insurer only if they are not satisfied on the service front," Ramalingam said.

Health portability would not only ensure that all look at improving service levels but would also increase competition for retention of good customers, Ramalingam added.

It is to be noted that portability will enable transfer of the credit gained by the insured for pre-existing conditions and time bound exclusion if the policyholders chooses to switch from one insurer to another insurer or from one plan to another plan of the same insurer, provided the previous policy has been maintained without any break.

A break in policy occurs when the premium due on a given policy is not paid on or before the premium renewal date or within 30 days thereof, IRDA said in its advertisement.

The policyholders should fill in portability from along with the proposal form and submit the same to the insurance company, it said.

If the insurance company does not communicate its decision to the requesting policyholder within 15 days of providing all details as required by insurer, it said, the insurance company shall not retain the right to reject such proposal.

The health insurance portability facility, which was earlier scheduled to become operational from July 1, has come into force from October 1.

Portability is allowed to all individual health insurance policies issued by non-life including family floater policies.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, October 02 2011. 13:09 IST