Under the Insurance Regulatory and Development Authority of India (IRDAI) regulations, policyholders can transfer their health insurance policy to another insurer through the health insurance portability facility while retaining key continuity benefits. According to reports from NDTV Profit, this facility allows policyholders to move from one insurer to another without losing credit for waiting periods already served, including those applicable to pre-existing diseases. The portability is particularly useful for policyholders who are unhappy with their existing insurer's customer service, claims settlement experience or hospital network and wish to move to a provider offering better benefits. Recent guidance emphasizes that policyholders should renew their policy well before the due date to avoid last-minute problems, as missing renewal deadlines can result in policy lapse and fresh waiting periods.
One of the biggest advantages of portability is the transfer of waiting period credits. As reported by NDTV Profit, the new insurer is required to recognise the waiting period already completed under the previous policy, allowing policyholders to retain continuity benefits. However, it is important to compare the new policy carefully, including coverage, exclusions, claim settlement process and hospital network, rather than choosing solely on the basis of lower premiums. The portability is not automatic, as the new insurer will assess the proposal before deciding whether to accept, reject or modify the terms of the policy. Recent examples demonstrate the importance of understanding waiting period clauses, with policyholders like Rahul in Hyderabad facing potential claim rejections due to active PED waiting periods during medical emergencies. Recent guidance highlights that keeping your records updated helps avoid delays during claims or policy related communication, including maintaining current contact details and nominee information.
Policyholders should submit their portability request to the new insurer at least 45 days before the renewal date of their existing policy. According to NDTV Profit, the application generally requires a portability form, existing health insurance policy details and previous claim history. After reviewing the documents and underwriting details, the new insurer may approve the request, reject it or offer the policy with revised terms. Key conditions to remember include that waiting period benefit is limited to the existing sum insured, insurers may be cautious about accepting portability requests from policyholders who have made significant claims under their existing policy, and applying well before renewal provides enough time to renew the existing policy if the portability request is declined. Recent industry developments show that plans from insurers like ICICI Lombard or HDFC ERGO may have different waiting period structures depending on the policy type.
A recent CoverSure analysis of over 100,000 policyholders reveals a critical underinsurance crisis among older policyholders. According to the report, most policyholders aged above 50 have a sum insured below ₹5 lakh—an amount that one hospitalisation in a tier-one city can exhaust. More alarmingly, 63% of policyholders who wanted to move to a more suitable policy could not do so because they had developed pre-existing medical conditions. This highlights the urgent need for regular coverage reviews before health deteriorates. As reported by Business Standard, medical inflation in India remains in the low double digits annually and significantly outpaces general inflation, meaning that coverage purchased a decade ago may no longer provide meaningful financial protection. Experts emphasize that a ₹5 lakh cover today may not remain relevant a few years later, with hospitals increasingly using advanced procedures like robotic surgery that cost more than conventional treatments.
Financial experts recommend treating health insurance as a dynamic financial product requiring regular review rather than a one-time purchase. According to ManipalCigna Health Insurance and Policybazaar, policyholders should reassess their coverage at key life milestones including marriage, family expansion, career changes, and income growth. The company's 'India Health Quotient 2026' report reveals that only 12% of policyholders review their health insurance policies more than once a year, highlighting a critical gap in financial protection planning. For metro city residents, experts suggest a minimum sum insured of ₹25 lakh, while those in smaller towns may need less coverage depending on circumstances. When increasing base cover becomes expensive, policyholders can consider super top-up policies that aggregate hospitalisation expenses across the policy year before applying deductibles, allowing multiple smaller claims to trigger additional cover once their cumulative value crosses the threshold. This structure provides a much larger safety net at a fraction of the cost of increasing the base policy.
