Thread by @NIKHILLJHA

🚨Portability Scam-Retail policyholders getting caught out

Random Telecaller asked the customer to port 2 years ago,
Sum Insured=50L
Claim Amount=5L

The new insurer rejected the claim saying pre-existing diseases weren't disclosed!
New insurer cancels the policy!

A thread🧵on scam around portability and checklist to follow while porting?👇

What is health insurance portability?

You bought a health insurance policy.
After some time when u read the policy terms and conditions.

You realize the policy has
🩺Room rent limit
🩺Copay
🩺Isnt a comprehensive policy

Now u want to change the policy!
What do u do?

In such cases, you can shift your policy to another policy with the same insurer or you can move it to a policy with a different insurer altogether.

This can be done by porting your existing policy.

For example:-

Mr X has an insurance policy with Star Health which has a co-pay of 20%
He finds Max Bupa has a policy with no co-pay

The premium is affordable for Mr X.

He can port his existing policy from Star health to Max Bupa

The Scam around porting:-

Many telecallers are randomly accessing policy details of customers and calling them on expiry,
These telecallers force people to port into some other policy with lower premium or show more benefits,

These telecallers are just incentivized to port and have no clue on checklist of portability

Here is a complete checklist on how to port your policy?

So what are the things to keep in mind before porting the policy?

1. Why are u Porting?

One must carefully read the terms/conditions of the existing policy.
If the policy is a comprehensive policy there is no need to change.

If there is a better policy with superior terms available at an affordable premium,

Then one can consider changing

So many agents port health insurance just for the sake of getting commissions!

DO NOT UNECCSARILY PORT UR POLICY!

Every time u port your policy whether the internal port within the same company or an external port to a different insurer
It will endure an underwriting process.

During underwriting,
If u are diagnosed with lifestyle diseases like hypertension or diabetes the insurer can load the premium.
There can be other complications as well which arise from frequent porting of policies

2. Disclose all pre existing diseases at the time of porting very clearly.

All porting entails underwriting again.
In fact the insurer will be even more cautious in underwriting as all waiting periods are now waived.

If you have been diagnosed with critical illness like cancer, kidney diseases or heart diseases.

ONE MUST NOT PORT.

Stick to ur previous policy

You should disclose each and every disease till date from birth to the insurer.

The insurer will then take a call on whether to accept or reject your port.

If the insurer comes to know later of nondisclosure then he will reject the claim and cancel the policy

3. Is the Premium of the new policy affordable?

Before you port to a new insurer.
Understand how will the premium increase?

Will they increase yearly?
Will they increase in 5 years?

All of this is clearly mentioned by the insurer in the terms and conditions

4. Quality of the service from the new insurer

How is the claims experience in the new insurer?
How swiftly does the new agent provide service in times of claims?

Just dont simply port on the request of an agent
Figure all of this out

5. Port at least 1 month before the expiry of the policy

This will allow sufficient time to the new insurer to underwrite the new policy and any queries can be solved

This helps a long way in continuity of the policy

How to port a policy?

Step 1: Request portability from the new insurance provider at least 45 days before the current policy is set to expire.

Step 2: When the request for portability is received, the new insurer will offer a proposal, a portability form

Step 3:

Once the new insurer receives all the relevant information, they will evaluate your proposal. The underwriting team of the insurance company will assess your risk profile.

Based on the underwriting, the insurer will decide whether to accept or reject your application

Conclusion
🩺Port only if you get a policy with better conditions
🩺Disclose all terms and conditions very transparently.
🩺Port at least 1 month prior to expiry of the current policy
🩺Check how the premiums will increase in the future