Thinking of porting the insurance policy? Keep these 5 things in mind, otherwise you may have to bear a big loss!

If you want to change your insurance company and want to port the policy to a new company, then this news is important for you. There are many terms and conditions associated with porting, ignoring which you may have to suffer a loss. Know about this here.

If you are not satisfied with your existing insurance company, then policy porting can be a better option for you. Customers can transfer their insurance policy from one company to another. But keep in mind that this process also includes many terms and conditions, ignoring which you may have to bear a big loss.

1. Can the new company refuse to port the policy?

Yes. Policy porting depends entirely on the new insurance company. They decide by looking at your age, health condition, and history of previous claims. If you have claimed repeatedly, then the new company may refuse porting.

2. When to start the porting process?

If you want to port the policy, then apply for porting to the new company 40 to 45 days before the current policy expires. This will give the new company time to check your entire medical and claim record. You can do this yourself or get it done by a financial planner. Before applying to the new company, find out about it thoroughly, so that there is no need to change companies again and again.

3. Changing the company repeatedly can increase the problem!

If you change the insurance company again and again, then the new company may consider it a risk and refuse to port the policy. Experts advise to stay with the same company for at least 4 years so that the porting process can be easy.

4. Will any additional fee have to be paid for porting?

According to the rules of IRDAI, the policyholder does not have to pay any fee for porting. Yes, if the new company puts a condition of medical test or tax, then you may have to pay its cost.

5. Do the old benefits remain after porting?

Yes. Basic benefits like sum insured, riders, no-claim bonus and waiting period credit get transferred to the new company. But non-standard benefits like discounts or special add-on services do not get transferred.

Points to keep in mind

Apply for porting on time.

Keep your claim history clean.

Avoid changing companies frequently.

Be aware of IRDAI rules.

Read the policy terms carefully.

FAQs

Q1. Does insurance policy porting apply to all types of policies?

No. This facility is mainly applicable to health insurance policies.

Q2. Does policy porting take more time?

Usually it can take 15-30 days as the new company has to check the medical and claim records.

Q3. What to do if policy porting is rejected?

In such a case, you can renew the policy of the same company or buy a new policy from another company.

Q4. Is the no-claim bonus lost during porting?

No. As per IRDAI rules, your NCB is transferred to the new company.

Q5. Is a new medical test necessary while porting?

Many companies may demand a medical test, especially if you are older or have a long claim history.