News details

• 26 May 2025

Insurance Portability: What You Can Keep and What You Can’t – A Complete 2025 Guide

Imagine investing in a health insurance policy for years—only to be stuck with poor service, low claim settlement, or rising premiums. The good news? You’re not stuck anymore. Thanks to health insurance portability, policyholders in India now have the freedom to switch insurers without sacrificing the benefits they’ve built over time. Introduced and regulated by the Insurance Regulatory and Development Authority of India (IRDAI), this feature empowers you to make a smart switch—when the plan, premium, or provider no longer meets your expectations. Whether you're unhappy with your current provider or found a better deal elsewhere, this guide will walk you through exactly what you can carry forward, what you might have to leave behind, and how to switch insurers smoothly and confidently.

What is Health Insurance Portability?
Health insurance portability allows policyholders to transfer their current health insurance plan from one insurer to another—without losing accumulated benefits, such as waiting periods or No Claim Bonus (NCB). This means you can switch to a new insurer that offers better service, lower premiums, or more comprehensive coverage while retaining the benefits you've already earned.

This flexibility is available for:

Individual health insurance policies

Family floater plans

Even employer group policies (to individual policies)

The condition? You must have held the policy for at least 12 consecutive months before initiating the porting request.

This move is especially valuable when:

You face frequent claim rejections or delays

The insurer offers poor customer service

You find a policy that better matches your current lifestyle or medical needs

Premiums are unreasonably high for the value provided

In 2025, IRDAI continues to refine and simplify this process, ensuring portability is not just a possibility—but a consumer right.

Real-World Impact:
Imagine a daily-wage earner whose only source of income is disrupted due to an accident. A microinsurance policy covering accident-related disability ensures they receive compensation and can support their family during recovery. Similarly, crop insurance can protect a farmer from the financial blow of a drought or flood.

What You Can Keep While Porting Your Insurance
When you switch insurers, you might worry about losing the progress you've made over the years. But here's the good news—you retain several key benefits when you port your policy. Let's explore them:

1. Continuity of Benefits
Perhaps the biggest win—your waiting periods are protected. Whether it’s for pre-existing diseases, maternity benefits, or specific conditions like diabetes or hypertension, your already-served time counts with your new insurer. For example, if your old policy had a 3-year waiting period and you've completed 2 years, your new insurer will only ask you to wait for the remaining 1 year. You don’t have to start all over again.

2. No Claim Bonus (NCB)
NCB is the extra sum insured awarded for every claim-free year. When you port, your accumulated NCB travels with you. So, if your base policy was ₹5 lakh and you've earned an ₹1.5 lakh bonus, your new policy begins at ₹6.5 lakh coverage. Tip: Be sure to check if the new insurer converts NCB into extra sum insured or a discount in premium—it can vary.

3. Sum Insured Portability
You can port not just the base sum insured but also the cumulative bonuses attached to it. This ensures you don’t lose out on the coverage you built through years of premium payments.

4. Customisation and Flexibility
While porting, you’re not bound to stick to an identical plan. You can upgrade your coverage, add riders, or opt for more inclusive features with the new insurer—something you might have missed earlier.

5. Freedom to Choose Across Providers
IRDAI ensures zero penalties or restrictions when moving between insurers. You can switch from public to private providers, individual to family floater plans, and even increase the sum insured—provided you're upfront during the application process.

What You Might Lose During Portability
While the core benefits carry over, not everything transfers seamlessly. Here's what you need to be cautious about:

1. Add-On Covers May Not Be Portable
Optional covers like personal accident, maternity riders, or room rent waivers might not be available with the new insurer—or they may have different conditions. Even if available, they may be priced differently or have their own separate waiting periods.

2. New Underwriting Assessment
Your new insurer may re-evaluate your health profile and request additional medical tests, especially if you’re increasing the sum insured or have declared new conditions. This means premiums might change, and in rare cases, coverage for some conditions could be denied.

3. Waiting Periods for New Benefits
While your existing waiting periods carry over, any new rider or add-on you choose might come with a fresh waiting period. Always clarify this while reviewing your new policy terms.

4. Loss of Loyalty Perks
Insurers often offer perks to long-term customers, like faster claim processing, no co-pay clauses, or discounts on renewals. These are not guaranteed to carry over when you switch, as they're usually company-specific.

Step-by-Step Guide to Porting Your Insurance
Here’s how to port your health insurance policy hassle-free:
Step 1: Start Early

Apply for porting at least 45 days before your renewal date. IRDAI mandates this window to ensure timely processing.

Step 2: Research and Choose Your New Plan

Compare policy features, premiums, inclusions, and claim settlement ratios. Consider working with a certified insurance broker (like BasketOption) for better insight.

Step 3: Submit Your Request
Fill out the portability form and submit it along with:

Existing policy documents

Claim history

Renewal certificate

The new insurer will approach your old insurer to verify your claim details and policy history.
Step 4: Assessment and Issuance

Your new insurer must make a decision within 15 working days. If they fail to respond in time, your porting request is automatically approved.

Step 5: Review the New Policy

Once you receive the new policy document, review it carefully. Ensure all benefits, waiting periods, and sum insured details match what was promised.

Common Myths About Insurance Portability (Debunked!)
Let’s clear the air around some common misconceptions:
It’s risky and complicated to port

Truth: Porting is a simple, IRDAI-regulated process designed for policyholder convenience.

I’ll lose all my benefits if I switch

Truth: All core benefits like waiting periods and NCB are retained during porting

Only identical policies can be ported

Truth: You can switch between individual, floater, and even employer group policies in certain cases.

I can only port within the same insurance company

You can port to any insurer registered with IRDAI.

Conclusion
Porting your insurance doesn’t mean starting over—it means starting smarter. It’s your right as a consumer to demand better service, broader coverage, or more competitive pricing without letting go of the benefits you’ve already earned. Whether you're switching due to premium hikes, better features, or claim settlement issues—portability is your path to financial freedom and health security.

Looking for tailored insurance solutions or expert advice? Visit https://basketoption.insure/, the leading insurance brokers in Bangalore. Our experts will help you compare, choose, and port your insurance policy with confidence—ensuring you never lose what matters most.