Porting in health insurance refers to changing the insurer without quitting the existing plan. It allows people to change their health insurer if they find its services poor. All insurers must mandatorily provide the porting facility to their customers as stipulated by the Insurance and Regulatory Development Authority of India (IRDAI). The regulation aims at better insurance coverage and making products affordable for the general masses. However, there are always pros and cons to any product, and here are some concerning health insurance porting.

Pros:-

Better Coverage: 

Portability can help you access better services and coverage offered by insurers. Suppose you want better coverage or a hospital network for a critical illness you have recently developed. In that case, you can opt for porting, which will help you access possible superior services offered by other insurers. You may also want to port if your children have grown up and you want to keep your old health policy for yourself. You may also consider porting based on the insurers’ services, like their hospital networks, availability of cashless facilities, customer services, etc.

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No-claim Bonus: Portability also allows you to transfer your no-claim bonus from existing insurers to new ones, offering convenience and the opportunity to look for better services. More importantly, the option to transfer the no-claim bonus to another is the main USP of porting.

Continued Benefits: Porting helps you retain the existing benefits while exploring other plans that are superior or more affordable as your life status changes, like marriage, children, responsibility to care for old parents, etc. For instance, health plans may or may not have maternity benefits pre or post-hospitalisation, accidents, etc.

Cons:-

Porting Rule: Porting allows you to change the insurer only during policy renewals. So, you will have to wait to change the insurer until the renewal date. Because of the waiting time, you will have to put up with the old plan longer, blocking your chances to access superior services from other insurers and leading to higher medical costs.

Higher Premium: A better product means a higher price, thus proving that better services can be availed only by paying more to your insurer. You will need to spend a significant amount to have robust coverage. However, the no-claim bonus transfer could help you cover this additional onslaught in your pocket.

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New Terms: The new terms may be positive or negative. On the negative side, say, it doesn’t cover dependent parents, children, etc. In that case, you will end up paying for separate policies. Also, the hospital network could be different, and you may be unable to access the cashless facility near your home. Sometimes, the change itself can be difficult to manage and add to your inconveniences.