IRDA issues final guidelines for insurance portability

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Health insurance policyholders, dissatisfied with the service of their insurer, can switch to another company and carry with them their track record and no-claim bonuses.

The IRDA on Tuesday issued final guidelines which gives insurance companies directions on portability. In terms of the guidelines, a policyholder 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.

Ref and Read more: http://timesofindia.indiatimes.com/business/india-business/Mediclaim-portability-starts-in-Oct/articleshow/9973237.cms

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