Health insurance portability from Oct 1 : IRDA Action

Mr. J Hari Narayan,  IRDA Chairman

Health insurance portability service, which would allow policy holders to switch insurers, is all set to be implemented from October 1, 2011 the IRDA (Insurance Regulatory and Development Authority ) said  recently.

As per portability rules, consumers will get credit for the time already spent for covering the pre-existing disease along with bonus accrued to him from his past insurer.

The scheme was proposed to come into force from July 1, 2011 earlier, but was deferred for three months due to certain outstanding issues with insurance companies.

Ready to implement
Mr. J Hari Narayan,  IRDA Chairman said "We are ready to implement the health portability plan from October 1, 2011. On the highest NAV (Net Asset Value) guaranteed products, which are seen as a "risk products and planning to come up with regulations for it. The concern, which I have as regulator is the communication mechanism for highest NAV product that might lead to misconception of the buyer. Therefore, it is a risky product. We are getting details about the matter and we will take a regulatory decision soon."

The highest NAV guaranteed products give consumers a guaranteed return based on the highest NAV that the policy has achieved during the entire term of the insurance plan.


Now, nearly 20% the total ULIP (Unit Linked Pension Plans) comprise sales from highest NAV products.

CII data shows, India's health insurance market is expected to touch Rs 70,000 crore with a coverage of 50 crore people by the year  2020.

Share: