How Health Insurance Portability Works (Switching Insurers Without Losing Benefits)

The Insurance Regulatory and Development Authority of India (IRDAI) gives every Indian policyholder the right to health insurance portability. IRDAI introduced this right in 2011, and its Master Circular on Health Insurance Business dated May 29, 2024 (Reference No. IRDAI/HLT/CIR/MISC/77/05/2024) strengthened it further. You can now transfer your current health insurance policy from one insurer to another at the time of renewal without losing benefits you have already earned, such as waiting period credits, No-Claim Bonus (NCB) and moratorium status.

Before this rule existed, switching insurers meant starting over, going through waiting periods again, and losing any NCB that had accumulated. Health insurance portability changes that. The benefits you built up under your existing policy carry over to your new insurer.

What Is Health Insurance Portability?

Health insurance portability allows policyholders to transfer an individual or family floater health insurance policy while retaining accrued benefits. It includes all indemnity-based health insurance policies, particularly family floater plans, offered by Indian insurers authorised by IRDAI.

Personal accident and travel policies are excluded from this provision. Benefit-based policies (which pay a fixed lump sum regardless of actual expenses) are also not covered under the portability framework. If you hold either product type, you will need to compare and switch through the ordinary buying process instead.

Who Is Eligible?

You can use health insurance portability if:

• Your existing policy is active and has been renewed without a break in coverage.
• You switch at renewal, not mid-term. IRDAI does not permit portability during the policy year.
• Your policy is an individual or family floater indemnity plan. Benefit-based and standalone personal accident covers do not qualify.
• You submit your request within the window set by IRDAI (covered in the next section).

There is no age restriction on portability. The IRDAI Master Circular 2024 removed the maximum entry age cap, so senior citizens can also avail themselves of this benefit. IRDAI also places no cap on how many times you can switch over your lifetime, as long as you maintain continuous coverage each time.

Benefits That Are Carried Forward

One of the most significant features of health insurance portability is the transfer of accrued benefits. The table below summarises what is protected:

Keep in mind that carried-forward benefits apply only up to your existing sum insured. If you increase your cover while porting, the new insurer can apply a fresh waiting period to the additional amount.

IRDAI Timelines and Key Rules

The following deadlines control the porting procedure in accordance with the IRDAI Master Circular 2024:

Apply for portability at least 30 days before renewal (but not earlier than 60 days). Insurers may still consider requests made within 15 days of renewal, provided there is no break in coverage.

Key rules under the 2024 Master Circular:

• Pre-existing disease (PED) waiting periods are now limited to 36 months instead of the prior maximum of 48 months.
• The 8-year moratorium period has been reduced to 5 years. After 60 continuous months (5 years), a claim cannot be denied on grounds of non-disclosure or misrepresentation, except in cases of established fraud.
• There is no charge for initiating health insurance portability.
• All IRDAI-authorised general and standalone health insurers must accept portability applications and process them in accordance with IRDAI regulations. Approval remains subject to the new insurer’s underwriting.

Step-by-Step Porting Process

Here is an overview of the typical steps required:

1. Compare plans. Look at sum insured, sub-limits, room rent restrictions, network hospitals, co-payment terms and claim settlement ratio across a few insurers before you commit.
2. Apply early. Submit the portability and proposal forms to your chosen new insurer at least 30 days before renewal, but no earlier than 60 days.
3. Let the IIB exchange your data. The new insurer requests your policy and claims history from your existing insurer through the Insurance Information Bureau (IIB) portal. Your existing insurer must respond within 72 hours.
4. Go through underwriting. The new insurer reviews your application, which may include medical tests depending on your age, health profile and the sum insured you are applying for.
5. Wait for the decision. The new insurer must communicate acceptance, a counteroffer or rejection within 5 days of receiving your data.
6. Complete the switch. Pay the premium once your policy is approved. Your new policy typically begins the day your existing policy expires, subject to approval and payment.

Documents Required

When starting health insurance portability, the following paperwork is usually required:

Portability vs Migration: Key Difference

• Moving from one insurer to another is what IRDAI calls health insurance portability.
• Moving from one plan to another within the same insurer is called migration.

Migration is often simpler and may involve less underwriting scrutiny, depending on the insurer and the product you are moving to.

If you hold group health insurance through your employer and want an individual plan instead, the path is slightly different. According to IRDAI requirements, you must migrate to an individual policy with the same insurer. Then port to the new insurer if you want to switch from group insurance.

Portability vs Buying a New Policy

It helps to separate portability from simply buying a brand-new policy, since the two are easy to confuse.

• Continuity benefits: Porting preserves your waiting period credits, NCB and moratorium clock. A fresh policy resets all three.
• Underwriting: Both involve underwriting, but a ported application is assessed against data your existing insurer has on file, while a fresh purchase starts with no history on file.
• Timing: Porting is available only at renewal, within the 30- to 60-day window. A new policy can be bought any time.

If you are unhappy with your current insurer but do not want to lose years of earned coverage, porting protects that value in a way buying fresh cannot.

Limitations and Risks to Keep in Mind

Before starting the porting process, policyholders should carefully consider the following limitations to avoid unexpected financial or coverage-related failures.

• Changes in Premiums: Because the new insurer sets its own rates, the premium may be comparable, higher, or cheaper. Since September 22, 2025, premiums for individual health insurance policies, including family floater plans, are exempt from GST. When comparing policies, use the GST-free premium as your baseline.
• Rejection Risk: Depending on the applicant’s age, medical history or claims history, the new insurer may reject the application. All portability requests are subject to underwriting scrutiny.
• Higher Sum Insured: Benefits are carried forward only up to the sum insured of the existing policy. Any enhancement in coverage may attract fresh waiting periods on the incremental amount.
• Coverage Gaps: Applying too close to the renewal date risks a lapse in coverage if the new insurer requires additional underwriting time.
• Network Differences: The cashless hospital network of the new insurer may differ. Verify that your preferred hospitals are included before finalising the switch.

When Does Porting Make Sense?

Health insurance portability may be a practical consideration if:

• Your current insurer has a poor claim settlement ratio or slow processing times.
• You need a wider cashless hospital network.
• Your current policy has restrictive sub-limits, high co-payment clauses or an inadequate sum insured.
• You have found a plan with better features at a comparable or lower premium.
• Your healthcare needs have changed, for example, after a diagnosis or a change in family composition.

Porting may not suit you if your existing policy has been in force for several years with comprehensive cover and consistent renewals. In that case, the continuity value you have built up may outweigh whatever you would gain by switching.

Conclusion

Every Indian policyholder has a significant choice thanks to health insurance portability: the ability to switch to a better insurer without losing the waiting period credits, no-claim bonus and moratorium status accrued during years of continuous coverage. The framework is supported by IRDAI’s Master Circular 2024 and is intended to be clear, time-bound and policyholder-friendly so that changing insurers does not require starting over.

That said, porting is worth thinking through carefully. Compare sum insured, sub-limits, network hospitals, claim settlement rates and premium structures before you begin. Used well, health insurance portability helps you find coverage that fits your changing healthcare needs, without giving up what you have already earned.

Frequently Asked Questions (FAQs)

1.     Can health insurance portability be initiated at any time during the policy year?

No. Health insurance portability is generally initiated at the time of policy renewal. You must submit the portability form to the new insurer at least 30 days before your existing policy’s renewal date. Under current IRDAI regulations, porting is generally not permitted mid-term. Applying too late risks a gap in coverage or rejection of the portability request within the required timeframe.

2.     Will all my waiting period credits transfer if I port to a new insurer?

Yes, but only up to the sum insured under your existing policy. If you served two of the three-year PED waiting period, the new insurer credits those two years. However, if you apply for a higher sum insured, the additional amount may be subject to a fresh waiting period. The 2024 IRDAI Master Circular caps the maximum PED waiting period at 36 months.

3.     Can a new insurer reject a health insurance portability request?

Yes. Health insurance portability is a policyholder’s right; an application may be denied by the new insurer following underwriting review. Age-related risk evaluations, a high claim frequency or a negative medical history are common reasons for denial. If rejected, your existing policy remains valid provided it has not lapsed. You may also approach the Insurance Ombudsman or IRDAI’s Bima Bharosa portal if you believe the rejection is unjustified.

4.     Is there a fee for porting a health insurance policy?

No. IRDAI regulations specify that there are no charges for initiating health insurance portability. However, you will be required to pay the first-year premium to the new insurer once your portability application is approved. Any medical examination costs that arise during underwriting may vary depending on the insurer’s policy.

5.     Does the No-Claim Bonus transfer fully when porting?

The NCB accumulated under your existing policy is usually carried forward to the new insurer, but only up to the original policy’s sum insured. If your NCB has increased your effective cover beyond the base sum insured, the new insurer is not obligated to honour the enhanced portion beyond the base. It is advisable to confirm with the new insurer how they apply the transferred NCB before completing the switch.