It will now be more comfortable to change the company without breaking the insurance policy. Insurance regulator IRDA has cleared porting rules. For this, it has added portability and migration terms to its health insurance guidelines. This has made things about credit and time-bound exchanges for pre-existing conditions (PDs). There was confusion about it while migrating or porting from one insurance company to another. The insurance regulator has also explicitly added to the definition of migration.
All these changes have been incorporated in the guidelines on standardization in health insurance. These have been released by IRDA on January 1, 2020. These guidelines have been issued by IRDA regarding 42 commonly used definitions in health insurance policies. “The definition of portability and migration will apply in terms of all health insurance products,” IRDA said. The insurance regulator has removed the ‘Break in Police’ clause in the new definition. The break clause in the policy comes when the premium outstanding on the policy is not paid before or 30 days after the premium renewal date.
According to the new definition, portability means transferring the benefits achieved to health insurance policyholders for pre-existing conditions and time-bound exchanges. Earlier, there was a condition of break in the policy. But now it has been deleted. In simple terms, for the policyholder, this means that even if you have delayed the payment of premium, you can easily port your health insurance policy to another insurance company.
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