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Can Super Top-up policy be ported?

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08 Aug, 2022 by  Mrudhul

Please consider the following hypothetical situation:


Year 1

Policy 1: Taken 10L Base Policy from Company A - PED Waiting Period 2 years

Policy 2: Taken 40L Super Top-up Policy from Company A - PED Waiting Period 2 years.


Year 3

Ported Policy 1 to Company B with PED 2 years. Since 2 years waiting already over in company A, the PED cover in the new plan will start immediately.


Questions:

  1. Can Policy 2 also be ported 'in general' to company B? (40L SI)
  2. If yes to Q1, will the PED cover start immediately?
  3. If no to Q1, what is the best way to ensure waiting period credits from previous super top-up policy are utilised while changing insurance company?
  4. if no to Q1 & Q2 & Q3, any specific insurance company/plan that solves this specific problem for customers?


Thanks in advance,

Mrudhul

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09 Aug, 2022
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Dear Mridhul,


I will be crisp in my response.


  1. Yes can be ported, provided the Company B has a plan that has 40 L as sum insured.
  2. Since the portability is taking place after completion of 2 years once you port no additional waiting period will apply.


Please note declaration of PED is important to the new insurer during portability. Portability is not guaranteed and subject to underwriting guidelines of the insurer.


Regards

Rohit Dhingra

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11 Aug, 2022
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Hi Mrudhul,


Before answering Q1-4,


please note that PED cover may or may not start immediately especially if the company B foresees an impending treatment or surgery. For example, let's say in year 2, you may have undergone a TKR (total knee replacement) surgery for left knee and this needs to be disclosed while porting. The company B may apply additional waiting period if they foresee that the Right knee TKR is impending.


Similarly, the company B may apply loading on any PED during porting, generally for Hypertension, Diabetes, BMI etc.


And finally the company B may even not accept the portability proposal especially in cases where they see an impending surgery or treatment or for any decline conditions like cancer, major cardiac ailmwnts/procedures done even if they have been diagnosed after taking the policy with company A (i.e. during year 1 or 2).


So, although portability benefit is generally available, it may not work out in such cases.


The above is true for both base and top-up/super top-up policies.


Now coming to your specific questions


Q1. Yes, it can be ported, irrespective of the new SI (can be higher or lower), but the portability benefit is applicable only up to the existing SI.


Q2. Please refer to the same explanation above.


Q3. Not applicable


Q4. Hopefully in the coming days, insurers and IRDA may make the porting process seamless, standardised and a customer centric one. One solution is to choose a very good base plan and a top-up plan, preferably from insurers with good track record of settling claims (claim settlement ratio is not the correct metric). Also, create and maintain a separate emergency fund which be used as a backup for unforeseen events.


Feel free to ask if you have any further questions.

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11 Aug, 2022
Mrudhul
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11 Aug, 2022
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