Friday, 12 December 2014 04:12






IRDA, the apex regulator of the Insurance Industry has launched the policy of Mediclaim portability all over India from Oct 1.

A health insurance policy is a contract between an insurance provider (e.g. an insurance company or a government) and an individual or his sponsor (e.g. an employer or a community organization). By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity.

Now, under the Mediclaim Portability, the Medical policy holders with IRDA or those who are enjoying the facility of Mediclaim and are not satisfied with the service of their existing service providers will be able to switch to another insurer without any change in the premium outgo.

The Mediclaim Portability will help the customer by providing the opportunity to find an insurance carrier, which, can appropriately commensurate with their needs and lifestyle.

The convenience of Mediclaim Portability will be available to policyholders who are currently insured for a sum of one lakh and above.

According to the present rule, the health cover given to any policyholder, under the plan of medical portability has to be renewed every year. In case, there is no claim in any year, the policyholder is entitled to a bonus in the form of an increased sum and for every claim-free year, this bonus gets accumulated.

The policyholders can compare different policies provided by various insurance providers under hospitalization expenses, day-care procedures, effects of cumulative bonus and various types of illnesses covered under critical illness domain.

Mediclaim portability will be useful for people aged 65 or more. Most of the senior citizens face serious problems in changing insurance providers, primarily because the new insurance providers consider the policy as completely new one, and the diseases and accidents, which might have been covered by the previous company, are treated as pre-existing. With Mediclaim Portability, the policyholder can now switch their insurance provider if they are not satisfied with any of their services without any change in the premium.

The new Mediclaim Portability is more competitive and it is expected to offer customer friendly service to the policyholders.

A policy holder will have to approach an insurer 45 days before his policy with the old insurer expires, to enable the new company consider his application. The acquiring insurer will verify the claims history from the common database which will have two years of claims experience. Based on the data, the acquirer will decide whether to accept the proposal and the price at which it will do so. The old insurer will be bound to provide additional data to the new insurer within 7 days of receipt of the application and the new insurer will have to either accept or reject the proposal within 15 days after receipt of data from the old insurer. If the decision is not communicated within a fortnight the new insurer will be bound to accept the proposal.