Press Information Bureau

Government of India

Ministry of Finance

09-December-2011 16:53 IST

Insurance Regulatory and Development Authority (IRDA) has issued guidelines vide circular dated 9.9.2011 implementing portability of health insurance policies amongst non-life insurance companies w.e.f. 1.10.2011.

The Health Insurance Policy Holder can at the time of Renewal of his/her policies can shift to another Insurance Company for a similar product, if he is not satisfied with the present Insurance Company for any reason, without losing the Credits gained, if renewed with the existing company. This was not the case earlier; because change in insurance company or plans amounted to loss of these credits and the policies started as new, carrying all time limitations afresh.

Thus “Portability” helps to have a level playing field for all insurance companies and the Customer can choose and compare benefits across products and Companies. IRDA has also provided a portability portal facilitating easy data transfer between the insurance companies.

The views of the General Insurance Council and Life Insurance Council were taken into account by IRDA while finalizing the Portability circular dated 9.9.2011.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Lok Sabha today.

SS/HB/GN

Policy portability enables health insurance holders to switch insurers at renewal without losing accrued benefits. IRDA implemented policy portability for non-life health insurance, permitting policyholders at renewal to transfer to another insurer offering a similar product without losing accrued credits or restarting waiting period limitations; a portability portal was provided to facilitate electronic data transfer between insurers and the measure aims to promote a level playing field and consumer choice.