Should You Port Your Health Insurance Policy? Know the Benefits, Risks, and the Right Way to Do It

Rising medical expenses have made health insurance a necessity rather than a luxury. But what if you are unhappy with your existing policy—whether due to limited coverage, high premiums, or rigid conditions? Many policyholders face this situation and wonder whether switching to another insurer could be the solution. Fortunately, the Insurance Regulatory and Development Authority of India (IRDAI) allows customers to port their health insurance policy from one insurer to another without losing existing benefits.

While the process may sound simple, it comes with both advantages and risks. Let’s understand in detail why porting your policy could be beneficial, when it may backfire, and the right way to approach it.

Why Consider Porting Your Health Insurance Policy?

1. Better Coverage at a Lower Premium
   Often, policyholders feel that their current premium is too high compared to the benefits offered. For instance, your existing plan may provide limited coverage, while another insurer offers a broader cover—such as maternity benefits, wellness add-ons, or coverage for modern treatments—at a similar or even lower cost.
   Insurance expert Kapil Mehta points out that new insurers frequently launch attractive policies with advanced features at competitive prices. In such cases, porting your policy makes sense, as you can enjoy better protection without increasing your budget.

2. Adapting to Life Changes
   Major life events—such as marriage, childbirth, or aging parents moving in—often demand higher coverage. In such cases, porting your policy ensures you can upgrade your plan while retaining the benefits you’ve already earned, such as no-claim bonus and reduced waiting periods.
   For example, if your current policy has already completed the waiting period for pre-existing diseases, that advantage will continue with the new insurer after porting. This is a major plus for policyholders going through lifestyle changes.

3. Escape from Rigid Policy Conditions
   Some health policies come with strict clauses like low room rent limits, limited hospital network coverage, or mandatory co-payments. These restrictions can significantly reduce the value of your insurance during a medical emergency.
   By porting to another insurer, you can choose a plan with more flexibility, fewer restrictions, and wider hospital tie-ups, ensuring smoother claim experiences.

4. Bad Claim Settlement Experience
   If you’ve ever faced delays, rejections, or poor service while filing a claim, it’s a clear signal that your insurer may not be customer-friendly. In such cases, porting to an insurer with a better claim settlement ratio and transparent processes could save you from future hassles. A good health insurance policy should not only offer coverage but also ensure quick and smooth claims when you need it most.

Risks and Challenges of Porting

While porting offers several benefits, it isn’t risk-free. The new insurer has the right to evaluate your application, medical history, and risk profile. They may reject your request or increase your premium based on age, lifestyle, or pre-existing conditions. Additionally, if you don’t research properly, you might end up with a plan that looks attractive on paper but fails to meet your long-term needs.

The Right Way to Port Your Policy

• Compare multiple policies: Look at premium costs, coverage benefits, waiting periods, and claim settlement ratios before finalizing.

• Check IRDAI rules: Porting requests must be submitted at least 45 days before your current policy expires.

• Assess hidden conditions: Some insurers may still impose sub-limits or co-pay clauses. Read the fine print carefully.

• Don’t compromise on reliability: Choose insurers with a proven track record of claim settlement and customer service.

Final Word

Health insurance portability can be a smart financial move—helping you secure better coverage, lower premiums, and improved service while retaining your existing benefits. However, careless switching could backfire, leading to higher costs or reduced protection.

If your current insurer is not meeting your expectations, carefully compare alternatives and only then proceed with porting. Done right, it ensures peace of mind and financial security for you and your family in the face of rising healthcare costs.