Moratorium Period in case of Portability

06 Aug, 2021 | by Rohit Dhingra

How will the Moratorium Period be treated incase of Portability or Migration? How is Moratorium Period applicable to policies sold before Oct 1, 2020?

Health Insurance

2 Answer

Post

08 Aug, 2021

Hari Radhakrishnan

Regional Director, Amicus Insurance Broking

Moratorium period is a benefit under the policy and should be ported from one policy to another. However the IRDA instructions are not clear in this regard. Some insurers only give credit for the period the policy has been continuously in existence with them and not with other insurers.

Moratorium period is counted from the first policy that was taken and then continuously renewed. It is not that it is applicable only to policies taken after October 1.

0 Comments

08 Aug, 2021

Shailesh Kumar

CEO, Insurance Samadhan

Dear Rohit

As per IRDA circular dated 1st october 2020 , all policies have Moratorium period of 8 years . This period of continuous insurance of 8 years is called moratorium period after the period no claim can be contested by insurance company .

Continuity include portability if portability is done for similar cover and sum insured . It may not include migration because product features change within same company .

Moratorium is applicable to all policies sold before october 1,2020 .

Hope this suffice .

2 Comments

03 Oct, 2023

Vinay Madavi

hi,

if i migrate within same company for a different product - will the moratorium period benefit be applicable.

I have been insured with Apollo Munich since 2012 and now its under HDFC Ergo. If i change my product within HDFC - will a fresh moratorium period be calculated or the earlier 10 years would be in consideration?

14 Oct, 2023

Aakansha Jain

Hello Vinay,

The application of the moratorium period when migrating to a different product within the same company can be somewhat ambiguous. In my understanding, the 8 years of moratorium should apply to the total period of continuous coverage under health insurance, which may include more than one policy if you have migrated. The challenge here is that the moratorium period clause is ambiguous as it doesn't talk anything about migration and neither migration guidelines talk anything about moratorium period. So, the insurers may use this in their favor. Given this ambiguity, it is advisable to contact your insurance company - they can provide you with the most accurate information regarding how the moratorium period would apply in your situation.

Thank you!

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