Option To Switch Health Insurer Without Losing On Benefits

How many times have you thought that the health insurance you have purchased is not the best option you had? There is something better in the market that is more suited to your needs. Now, IRDA and Insurance Firms are working towards providing you with the same, a choice to correct your mistake (if any).

From April onwards consumers that is, you will have the freedom to change your health insurance provider.

These new guidelines are being prepared by the Insurance Regulatory and Development Authority (IRDA) in unison with the General Insurance council, General Insurers like New India Insurance, ICICI Lombard etc. They are working on the norms to ensure profitability of Health Policies.

In current scenario, if you are dissatisfied with a service provider, you have to buy a new policy from the company of your choice.

This makes you lose the benefits on the existing policies and the pre-existing illness cover which is the most important of all. Thus in the case of new health policies, existing illness is not covered for the first few years and companies charge heavy premium to waive this too. Thus the importance of the continuity of a health insurance policy is seen.

This new norm will be a winning feat for both the company as well as the customer. You will get to choose and pick the best service provider and the company will benefit from the sharing of data on the insured which will prevent fraudulent claims.

The draft regulation, propose that the facility can be used only in case of similar products, in similar age groups having similar premiums across the service provider. Profitability (includes, age, premium charged for the products offering coverage up to Rs.1 lakh) or changing the service provider will not incur any additional fee or charge. They do feel that profitability will not feasible until switch from a group insurance product to individual product is allowed.