Points to Consider About Your Health Insurance When You Change Your City
According to the IRDAI, all policyholders have the right to transfer their health insurance plans from one insurer to another. Additionally, you can transfer your earned bonus and waiting periods when you switch your health insurance policy, saving you the trouble of starting over. And every person, regardless of where they live in the country or what city it is, needs health insurance. After all, health insurance plans provide many benefits that one may take advantage of to better their financial, physical, and emotional health.
However, we rarely consider the implications of relocating to a new region within the country when selecting health insurance coverage. Before obtaining a policy, we consider characteristics like age, health, and gender, but we frequently forget about location and insurance portability. Always remember that switching insurance policies might be complicated if not done carefully.
The most significant differences you should watch out for while moving to a new city are listed below.
Check the Policy Type
Remember that you can only transfer your existing health insurance coverage to another equivalent one. While switching, you cannot entirely alter the coverage, plan, or type of policy. For instance, switching from individual to family health insurance is impossible.
It is still crucial to fully comprehend the new policy's coverage and exclusions to avoid unpleasant surprises. For example, check the new plan's co-payments, room limitations, deductions, and sub-limits.
A Change in the Premium Rate for Health Insurance
The cost of health insurance premiums is the most significant factor that can be altered. Therefore, you must understand that a certain number of health insurers or health insurance firms determine health insurance coverage based on the zone in which a given city is located.
Currently, cities are divided into zones, such as Zone 1, Zone 2, and Zone 3. Another crucial point is that various health insurance companies designate cities differently. For instance, Mumbai, Delhi and all the other metro cities fall under Zone 1. Tier-I cities are categorised into Zone 2, whereas the rest of India's cities are in Zone 3.
You can foresee a health insurance plan at a discounted price if you relocate from a Tier1-I city to a Tier-II or Tier-III city. Be aware that smaller cities generally have lower rates of infectious lifestyle diseases and hospital costs than larger ones.
Restrictions on Medical Coverage
There is a considerable likelihood of encountering restrictions from some insurance companies when a policyholder relocates from a low zone location and requires sophisticated care in the new city (high zone). However, take note that each company may have different levels of restrictions. In such a case, it would be preferable for the policyholders to choose the co-payment provision, allowing them to receive the more expensive care without risking their health.
The cost of a specific but fixed percentage of medical costs, consultation fees, and hospitalisation must be covered out of pocket by policyholders who opt for co-payment. However, they can choose a higher premium if they don't want to make a co-payment when they need advanced medical care.
Access to Medical Facilities & Network Hospitals
Each policyholder has one or two preferred network hospitals where they choose to receive medical care. Because network hospitals offer cashless care with no trouble, policyholders have the leading network hospital brands of their choice pre-determined in their minds. Policyholders are encouraged to examine whether or not the network hospitals of their choice are included in the list while changing the city. If their desired network hospitals are not included in the list, they may need to find a new insurer for their policy.
Notify Your Current Insurer
Before making the switch, you must let your existing insurance provider know that you intend to move your coverage. This must be communicated in writing at least 45 days but not before 60 days of your current health insurance expiration.
Don't forget to include the insurance provider you want to transfer to and any other information that may be needed. Within three days of receiving notice, your current insurance provider will acknowledge your application to port your health coverage.
Check That There are No Gaps
Your health insurance can only be transferred at the point of policy renewal. You must have chosen your new health insurance plan before this time because you must notify your current insurance provider at least 45 days before renewal. Therefore, don't put off porting your cover till the last minute.
Additionally, your port proposal can be turned down if your policy has expired, forcing you to start over with a new health insurance policy. As a result, you will no longer receive benefits like waiting periods and cumulative incentives. Moreover, you risk losing protection in the event of a medical emergency.
Conclusion
Since you know the critical factors to consider while relocating to a new city now, keep these things in mind to prevent any inconvenience.
By choosing all-India coverage, you can avoid transferring health insurance plans. However, if the cost of a policy with all-India coverage appears expensive to you, it would be best to select a zone-based policy only after taking your age, health, and anticipated length of stay in the new city into consideration.
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You can apply to transfer your health insurance policy 45-60 days before the renewal date of your current policy. The timing may differ depending on the insurer.
Consider transferring your health insurance plan for a variety of reasons:
- If you are dissatisfied with the claims process or service provided by your current insurer.
- If you believe that a more advantageous health insurance plan is available.
- If the coverage offered by your current health insurance plan is insufficient or doesn't cover certain medical conditions that worry you (such as maternity coverage).
No, you cannot switch your health insurance until the existing policy's renewal date. So do not forget to begin the process at least 45 days before your current health insurance expires.
No, the idea behind portability is to ensure that you keep all the benefits of your current policy, including the collected cumulative bonus and the length of the waiting period.
According to IRDAI laws, neither the insurance company you currently have nor the one you desire to port to can charge you extra money to transfer your health insurance policy.