In a Notification dated 1st January, 2020 the Insurance Regulatory and Development Authority of India (“IRDAI”) has issued the Guidelines on Migration and Portability (“Guidelines”) of health insurance policies specifically stating the Portability and Migration Norms.
Portability should be allowed under all individual indemnity health insurance policies issued by General Insurers and Health Insurers including family floater policies.
- In addition to the migration option to be provided to the policyholders as specified under the IRDAI (Health Insurance) Regulations 2016:
- Every individual policyholder (including members under family floater policy) covered under an indemnity based individual health insurance policy will be provided an option of migration at the explicit option exercised by the policyholder;
- Every individual member, including family members covered under an indemnity based group health insurance policy shall be provided an option of migration at the time of exit from group or in the event of modification of the group policy (including the revision in the premium rates) or withdrawal of the group policy.
- Migration will be applicable to the extent of the sum insured under the previous policy and the cumulative bonus, if any, acquired from the previous policies.
- Various terms and conditions with respect to the provision of migration has also been laid down in the Guidelines.
The definitions of “Migration and “Portability” have been newly inserted in the IRDAI (Health Insurance) Regulations 2016 by a Notification dated 1st January, 2020 and have become effective immediately.
- [“Migration” means, the right accorded to health insurance policyholders (including all members under family cover and members of group health insurance policy), to transfer the credit gained for pre-existing conditions and time bound exclusions, with the same insurer.
- “Portability” means, the right accorded to individual health insurance policyholders (including all members under family cover), to transfer the credit gained for pre-existing conditions and time bound exclusions, from one insurer to another insurer.]
In light of the Guidelines, the new insertions have been made in the IRDAI (Health Insurance) Regulations 2016.