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How to transfer medical insurance coverage from one company to another?
Posted on: 25/Jul/2017 6:15:54 PM
As there is a popular prevailing trend to change the telecommunication network from one company to another, it is also possible to change the medical insurance coverage from one company to another.
IRDA introduced this facility in 2011. Though this facility is available over the last few years, many are not aware of the advantages and disadvantages in carrying out the medical insurance coverage transfer from one company to another.
Advantages
It is possible to transfer the medical insurance coverage from one company to another provided the policy has got the same features. Please note that it is not possible to convert a medical insurance coverage policy to accident insurance coverage policy.
It is possible to avail the benefits while the request for transfer is in the process. In other words, one cannot claim amounts incurred for the already existing complaints. It can be claimed only after a few years. This facility will continue while transferring from one company to another.
Please note that there is a rule that the treatment for the existing physical complaints can be taken only after 4 years after taking the policy. As an example, consider that you have been paying the premium for 2 years in one company. After 2 years, you decided to transfer to another medical insurance company during the 3rd year. You need to wait for 2 more years for your treatment under the transfer policy taking into account the 1st 2 years with the first company.
In case you have not claimed any in the old company, you can transfer the bonus earned to the new company.
Example - you have taken a Rs. 5 Lakhs insurance policy. You have paid the premium for 2 years. In case you have not made any claims during the 2 years, the medical insurance company will increase the policy value. Let us assume it is increased to Rs. 6 Lakhs from Rs. 5 lakhs. In case you are transferring to another medical insurance company, you can take a policy for Rs. 6 Lakhs. The premium will be calculated accordingly. Only the time duration of the policy and the bonus can be transferred. However, the limits for expenses and exemptions will be as per the policy taken with the new company.
It is also important to note that there might be an increase in the premium to be paid.
How to transfer?
In case you decide to transfer your medical insurance coverage from 1 company to another, you need to apply at least 45 days before the expiry of the policy.
Fill up the application form given by the new company. You must attach the reasons for the change and also the claims made so far and also a copy of the policy taken.
The new policy will be given after the scrutiny of your application and the claims. If necessary, you may need to attend a medical check-up.
Condition
Only if you had been renewing your policies without any break, it is possible to effect this transfer. Also, there is no condition that the new company must accept your request for transfer. It may even be rejected. The premium amount may be changed due to factors like increase in age, change in physical condition.
It is the best advice for people in good h health under the age of 40 not to transfer their policy but to select another new health policy. However, for people above 40 years of age, the duration of waiting for treatment may increase. So, it is better for them to change their medical coverage policy to another company.
