Health Insurance Portability

After mobile numbers, it is time now for the health insurance policies to turn portable. Uptil now, only motor insurance policies enjoyed this benefit in the insurance industry. With its new set of guidelines, IRDA has finally kicked Health Insurance Portability in from OCT 1^st this year. A much talked about phenomenon but scarcely understood! As is the literal meaning, your policies can now be carried/moved with ease from one insurance provider to the other. The system to share and transfer data of the policyholders is at last in place, clearing the deck for regulator, companies and customers to begin the process. Dissatisfied policyholders, for long, have had no choice but to stick to their existing insurance provider for the fear of losing benefits. They can now continue enjoying the existing benefits while relocating -

• Credit for the waiting period benefits accrued with the previous insurer for the pre-existing disease. 
• No claim bonus carried forward.
•  Possibility to convert from Group mediclaim, such as the one provided by the employer, to individual health policy. A year after such migration, transfer to any other non-life insurer.

All you have to do is apply to the new health insurer at least 45 days before the premium renewal date of the existing policy. This ensures that the new insurer has reasonable time to verify history of claims which shall be available on common database to all insurers. Strictly adhere to this rule, for the insurer will not be liable to offer portability if the policyholder fails to do so in the prescribed time. However, you can switch your health insurance policy to another insurer only if you have held the policy for a minimum of one year. It is important for everybody to be clear as to how the system will work as there are more than 50 companies who are engaged in health - which includes life, general and specialist health insurance companies. This step will not only help policyholders by giving them a wider choice and providing the insurance providers the impetus to focus more on customer value and engagement, but will also benefit the insurance industry in the long run by bringing in more transparency and allowing them to assess the risk and provide underwriting at the point of sales.

 PROCESS : On receipt of application for portability, the new health insurer shall furnish the portability form along with proposal form and other relevant product details. The policyholder has to fill in all the forms and submit the same to the new insurer. Within 7 days of receipt of the completed portability and proposal form, the new insurer, if required, can ask the existing insurer additional information about the policyholder in the prescribed format. The existing insurer is bound to provide such data within 7 days of receipt of such request. Based on the information received, the new insurer shall decide to issue health cover to the policyholder. In case, the new insurer does not communicate its decision within 15 days, then it is assumed that the application has been accepted and later on it cannot reject such application.

Where on the date of renewal of existing insurance policy, the outcome of acceptance of portability is still pending with the new insurer:

• If requested by policyholder, the existing policy shall be allowed to be extended for a short period (at least one month) by accepting pro-rata premium for such period.
• The existing policy shall not be cancelled until such time a confirmed policy from new insurer is received or if otherwise instructed by the policyholder.
•  The date of commencement of risk of the policy issued by new issuer shall match the date of expiry of the short period in such cases, and
• In case, for any reason, the policyholder subsequently chooses to continue the cover under existing insurer, it shall be allowed to continue by charging a regular premium and without imposing any new conditions.

Thus, it can be seen that ample safeguards are provided in the guidelines to ensure that the policyholder has adequate options and is not without cover at any point of time while the portability is in progress.

This move is expected to increase quality of services and encourage healthy competition among health insurance firms.

Avoid getting Trashed

The most critical moment in the entire tenure of an insurance policy is when a claim is filed. “Rejection, of any kind hurts.”In an insurance claim, the blow is multitudinal – financial, emotional,  physical - thus making it more stressful.

“One of the most common queries we get from people buying a policy is whether the insurance company will honour the claim,” says Rahul Agarwal, founder, Ideal Insurance Brokers (P) ltd., a reputed insurance brokerhouse across the country.

I was diagnosed with vertigo, a type of dizziness, this May. This is not all. The real trouble started after three days of hospitalisation when the TPA of my health insurer deprived me of the cashless claim facility. Though the insurance policy had promised me cashless hospitalisation, I had to pay the bill of Rs. 39,000 from my own pocket.

The TPA refused on absurd grounds like the illness could have been due to some pre-existing ailments and that they needed time to scrutinize the claim. However, when I referred to medical professionals, they told me that my illness had nothing to do with my cardiac ailment which was declared as pre-existing in my health Insurance policy.

While the denial of the cashless facility didn’t necessarily mean repudiation of the claim, it did shake my confidence in the insurance company. I, who has been paying around Rs 18,000 every year since 2009 as premium to the Health Insurance Co., felt cheated.

The figures of claims rejected/ pending as of today would definitely make any policyholder dubious about the efficiency of his insurance cover. But this is only half the picture. The no. of claims settled is no less. The stringent procedure followed to settle Insurance claims is to ensure that only genuine claims are paid. In fact, if Insurance companies show leniency and keep accepting bogus claims, it may cost customers more in the form of higher premiums. It is thus the duty of the policyholder to follow all policies and procedures given in the insurance document and not give the insurer any chance to reject his claim – health or otherwise.

Here, I list some broad reasons why our insurance claims may be rejected and ways to steer clear of them –

Reason:	Solution:
NON-DISCLOSURE, partial  disclosures and wrong disclosures of significant facts such as age, nature of occupation, income, existing insurance policies, major ailments or pre-existing medical conditions.	Full Disclosure. When applying for the product, understand the consequences of concealing or giving incorrect information.
LACK OF KNOWLEDGE regarding covers and exclusions under the policy. We are not even aware when breaching a condition mentioned in the policy document.	Go through the policy terms and conditions and understand them well before purchasing. When in doubt, seek clarifications from the advisor.
DISCREPANCY IN PROPOSAL FORM because we often refrain from filling our forms and depend on third parties. They are often not aware of details and an imp fact might be inaccuratly represented.	Fill up the proposal form yourself. Submit genuine documents in an orderly and timely manner to the insurance company with details. If any discrepancy is found in the policy, immediately get it rectified.
SURPLUS EXPENSES. Private hospitals, in their quest to generate maximum revenue, sometimes perform medical procedure which may not be necessary. In motor, usually bills are blown out of proportion. These irregularities, when caught by the insurer, results in rejection of the claim.	Avoid extra costs. Make sure the medical process undergone was necessary. Do not include motor repair charges of pre-existing damages or costs not covered under the policy in the claim.

Have you used your cashless card yet?

The concept of health insurance in India is seeing a continual improvement in the past few years. One such result is cashless medical insurance which allows the policyholder to be hospitalized without the harassment of immediate payment, especially during emergencies. You just intimate your Third Party Administrator (TPA) of your situation and avail the medical treatment. TPA verifies your policy details, on behalf of the insurer, and gives clearance for the cashless services to be processed. In case of a planned visit, you should first inform the TPA and then avail treatment under the network of hospitals. Thus the most important research here is the number of tie-ups your cashless insurance carrier has with hospitals across the country.

Needless to say, the more hospitals your medical insurance provider has in its network, the easier it will be for you to avail its benefits.

Though Insurance companies hype cashless settlement policies as customer-friendly and convenient, for many who have bought these policies, the experience has not lived up to the promise. Many-a-times the insured has to either pay the hospital himself and get it reimbursed later, or run from pillar to post for the 'pre-paid'

facility, in which case the entire essence of a cashless facility vaporizes. Reasons behind it are many, the primary ones being the ignorance of the user and the hospitals overcharging patients under cashless claims.

It is thus worthwhile to keep the following in mind, when availing cashless -

• For planned hospitalisation, send the pre-authorisation form to the TPA, at least a week before the surgery.
• In case of accidents, make sure the doctor fills in fields like time of accident and evidence of alcohol abuse. A partially filled or illegible form sent to the medical team means it will be sent back to the hospital for clarification and cause more delay.
• If you are accompanying the patient then mention your cell phone number on the pre-authorisation request to ensure that the TPA can get in touch with you immediately.
• Carry your cashless settlement card at all times. This is of significant help in case of an emergency.
• Find out which of the network hospitals is close to your house or place of work.
• Be clear about which expenses and surgeries are covered by your policy.
• Don't forget to renew your policy every year.

Waiting period for Health Insurance

Did your claim got rejected because your disease was not covered in the first 2 years of the policy??

Are you suffering from some Pre Existing Disease and want to cover the same??

There are many diseases like Appendicitis, Hernia, Cataract, etc for which an individual can delay the treatment. Many people apply for a policy after discovering they are suffering from one of these diseases. So to avoid such intentional claims, the Waiting Period clause is there in All Health Insurance policies in India.

So, when you sign up for a new health insurance policy, it doesn’t get implemented with immediate effect. The policy comes into effect after a ‘waiting period’, which depends on the kind of insurance and factors such as

·         The nature of disease

·         Your medical history

·         The Insurance company

·         The Insurance Policy Chosen

In other words, the insurer is liable to entertain any claim amount filed only after this waiting period. If an individual undergoes an accident or undergoes hospitalization during the waiting period, the customer may not be covered for a loss.

 

As mentioned before, the concept of waiting period exists across different kinds of insurance policies, and the quantum of waiting period may differ depending upon the insurer and the nature of the insurance policy. However, following are the broad indicators of waiting period.

1)      There is an initial waiting period of 30 days during which no claims is entertained (except maybe an accident case where it has to be proved the accident happened after issuance of policy)

2)      There is an initial waiting period of 1-2 years for diseases like Appendicitis, Hernia, Cataract, Gall Bladder or Kidney Stone, Piles, Tonsillitis, etc

3)      Pre -existing diseases are normally not covered till 4 years of the policy. Previously pre existing was not covered at all. However, now IRDA has made in mandatory for Insurers to cover pre existing after 4 claim free years. In fact, some insurers are also covering pre existing after 1 year like the Varishtha Policy of National Insurance

4)      Diabetes and Hypertension can be covered in many policies from Day 1 on payment of extra premium. Else Diabetes will fall under the Pre Existing Clause

5)      Maternity can be covered in companies like Apollo DKV and Max Bupa after a certain waiting period too

A pre-existing disease refers to any medical condition of an individual prior to the commencement of the policy. Now the policy may be effective for any other ailments in the first few years of the policy. Buy any claim filed for illness related to the pre-existing disease will not be covered in the first 1-4 years of the policy as stated in the policy document. This feature is most common in insurance policies designed for senior citizens. Also, the insurers may insist that you stick with the same insurer if you want the cover to continue without further waiting periods in future.

However, when a corporate takes a Group Policy for all its employees, they can customize the policy to remove the “waiting Period” clause and even “pre existing” disease or “maternity” can be covered from the first Day of the Policy.

For more details, feel free to mail to our Health Insurance Help Desk at health@healthandinsurance.in or call at (+91) 98 30 01 23 88