Benefits of the Health Insurance Portability

The main benefits of portability are waiting period credit for pre-existing conditions and time-bound exclusions.

Pre-existing condition/disease:

Before portability came into picture, if a policyholder was suffering from any pre-existing diseases, the insurer would not offer cover for those diseases till four years. In case the policyholder moves to another insurer, he would again need to do a premium paying term of four years to get his pre-existing diseases covered. But with portability, he can carry forward the waiting period gained for pre-existing disease/condition to the new insurer from the day one itself. in addition to that, policyholders with good claims experience earn a no-claims bonus that is around 5 percent of the sum insured every year. This too can be carried forward to the new insurer.

Time exclusions:

The majority of insurers do not pay claims for some illnesses like hernia, , piles, cataract, fissures, fistulas, surgery of gall bladder, hysterectomy and joint replacement generally for the first year of the policy. Such omissions are called time exclusions. Now, if you were covered under an existing insurance policy for a period of one year, the waiting period of 30 days and first year exclusions will not apply in the policy to be renewed. In case the disease has two-year exclusion, then you will have to wait only for one more year. But, if the new insurer is offering an additional coverage not present in your existing policy, the waiting period for those extra benefits will apply.