health insurence portibility

7/30/2019 Health Insurence Portibility

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HEALTH COVER PORTABILITY

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PRESENTED BY:-

Harsh Murumkar

Krunal Parmar

Hardik Dasani

Kamaljeet Singh

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WHATIS HEALTH INSURANCE?

Its a insurance against the risk of incurring medical

expenses among individual.

By estimating the overall risk of health care expensesamong a targeted group, an insurer can develop a routine

finance structure, such as a monthly premium or payroll tax.

Health care policies give returns also on paid premium.

Returns may depend up on a share market or fixed rate.

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WHATISHEALTHINSURANCEPORTABILITY

This means one can switch from one health

insurer to another without losing any

benefits you have earned on your existing

health cover.

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SWOT ANALYSIS-

STRENGTHS

Portability will allow policyholders to switch to another

company and carry forward the waiting period credit for the

pre-existing disease cover. Till now policy holders have been

forced to stick their insurer for fear for losing continuity

benefits. If the new insurance company does not communicate its

decision on the portability proposal within the stipulated time

it becomes obligated to accept the proposal.

Even policy holder cover under employers group mediclaimcan now transfer the waiting period credit and move to

individual or family floater health policy.

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WEAKNESSES

It is up to the insurer to accept or a reject the proposal for a

switch. Those dissatisfied with an insurer claim settlementrecord and wishing to migrate may not find takers.

Insurer are free to levy premiums as per their norms. Hencethose in high risk categories like the, elderly or those with

illnesses can not accept reasonable premium while porting. Those with accumulated no claims bonus could be at a

disadvantage as a new insurer will levy the premiumapplicable enhanced sum assured.

While porting from a group cover the insured first will have to

switch to an individual cover of the same insurer. Only afteryear can they then move to the insurer of their choice.

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OPPORTUNITIES

For the customer if they are dissatisfied with prior insurancepolicy they can think about switch to another insurer.

If policy returns are linked with the share market those

customers also can be switch to the fixed rate policy and vice

versa.About the companies concern company can attract customers

from the other insurer company.

Companies can implement new policies to retain their old

customers.

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GRAY AREAS-(THREATS)

Insurer should clear migration proposal in a specified

time, but there is confusion over the calculation of the

time limit. Some say guidelines stipulate 15 days others

feel it is 35-40 days.

Clarity is needed on whether new insurer should

immediately cover disease contracted during existing

policy term.

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MARKET ENVIRONMENT

Competition will at high level. Though customers got power

to port from one insurance company to another insurer.

Companies first of all have to take efforts to retain their oldcustomers.

Insurance policies should more flexible.

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CONCLUSIONS

There are many confusing factors.

Portability will give a new power to insurance holder

and dissatisfied customers can switch policy.

Portability is a new thinking and yet not beenimplemented in market.

Portability has a great future.

Companies has to plane new policies for both old

as well as new customers to be remain existed inmarket.

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SOURCES:-

The Economics Times

www.google.com

Special Thanks to

Kamaljit Singh

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