Health insurance portability is a powerful feature introduced by IRDAI that allows policyholders to switch insurers while retaining certain benefits like waiting period credit and No Claim Bonus (NCB). The process enables individuals to move from one health insurance company to another or from one plan to another within the same insurer during policy renewal. According to IRDAI guidelines, portability allows policyholders to migrate from one health insurance company to another, from one plan to another within the same insurer, and from group to individual health insurance. However, portability can only be done during renewal, not mid-term, and requires careful planning as delays or incorrect disclosures can lead to rejection. The concept was designed to increase competition among insurers and improve service quality in the health insurance industry.
Multiple insurance policies can provide enhanced financial protection, but they do not automatically result in double payouts for the same loss. According to reports from Business Standard and Mint, the key distinction lies between benefit-based insurance, such as life insurance, and indemnity-based insurance, such as health and general insurance policies. Life insurance generally pays a pre-defined benefit when an insured event occurs, allowing nominees to claim applicable death benefits under each valid policy. For example, if an individual has two life insurance policies of ₹50 lakh each, their nominee could potentially receive ₹1 crore if both policies are active and death claims are admissible. As Siddharth Singhal, head of health insurance at Policybazaar, explains, each policy represents a separate contractual obligation, meaning nominees can generally claim under each valid policy, subject to respective terms and conditions.
Health insurance operates differently, reimbursing eligible medical expenses rather than paying fixed amounts. According to Mint reports, if a policyholder has two health insurance policies and incurs an admissible hospital bill of ₹8 lakh, the amount does not automatically split equally between insurers. The first policy chosen becomes the primary insurer, with any remaining eligible amount claimed from the second policy, subject to its terms and conditions. For instance, if Policy A pays ₹5 lakh and Policy B has ₹3 lakh available coverage, the combined payout cannot exceed the ₹8 lakh admissible expense. Sachin Joshi, President of Claims at Liberty General Insurance, explained that policyholders can choose any policy for claim settlement, and if the primary policy coverage is lower than the admissible claim amount, the insurer can coordinate with other insurers to settle the balance. However, the total amount received from all insurers cannot exceed the admissible medical expenses actually incurred.
Health insurance portability offers significant advantages for policyholders seeking better coverage or service quality. According to recent reports, completed waiting periods for pre-existing diseases are generally transferred to the new insurer, avoiding the need to restart waiting periods from zero. Policyholders can retain their No Claim Bonus (NCB), which helps in increasing the sum insured or reducing premium costs. The process ensures coverage continuity for long-term policyholders and provides flexibility to move away from poor service, high premiums, or limited coverage plans. However, the new insurer may accept, reject, or offer revised terms after evaluating risk and medical history, and premiums may increase based on risk evaluation, age, or medical history. The request for portability must be submitted at least 45-60 days before renewal, and the new insurer must respond within a defined timeline (usually 15 days).
When filing claims with multiple policies, policyholders must disclose all existing health insurance policies to allow the primary insurer to coordinate with other insurers where additional coverage is required. As reported by Mint, Shashi Kant Dahuja from Shriram General Insurance emphasized that policyholders should provide complete and accurate information about their other policies and relevant claim details. Non-disclosure or misrepresentation of material information, failure to provide required documents, or claims falling under applicable exclusions can result in claim rejection or reduction. There is no fixed rule requiring policyholders to use employer-provided group health policies before individual policies - the choice depends on coverage limits, policy benefits, terms, and policyholder preference. For example, many customers use their employer's group policy first and then use their individual policy for any remaining uncovered amount. The final settlement depends on the sum insured, exclusions, deductibles, sub-limits, and other conditions of respective policies.
According to the reports, more policies do not automatically mean better insurance, as the value depends on whether they fill genuine gaps, whether terms complement each other, and whether complete disclosures have been made. Singhal cautioned against focusing solely on sum insured amounts, noting that two policies with identical sum insured can offer very different protection due to exclusions, deductibles, co-payment conditions, and room-rent limits. For policyholders, understanding how policies work together is as important as the amount of coverage itself, requiring careful consideration of terms before purchasing additional policies, complete disclosure of existing covers, and thorough understanding of exclusions and waiting periods. Kumar emphasized that having multiple policies can increase protection, but only when the policyholder understands how the covers work together, checks terms before buying another policy, discloses existing covers when required, understands exclusions and waiting periods, and keeps all policy and claim documents in order. Recent reports emphasize the importance of comparing hospital networks properly, ensuring all preferred hospitals are included in the new insurer's network, and coordinating between old and new insurers during data transfer to avoid incomplete portability approval.
