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Regarding no claim bonus

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30 Jun, 2022 by  harivansh agrawal

So I have a question


Does No Claim bonus ported during porting health Insurance, because some insurer says they can't port No claim bonus even on internal porting

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Health Insurance

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30 Jun, 2022
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Hi Harivansh,


Incase of portability bonus earned does not get ported.


Regards

Rohit Dhingra


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01 Jul, 2022
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Hi Mr.Harivansh,


Portability (shifting from an existing insurer to a different insurance company) or Migration (change of plan within the same insurance company) allows the seniority to be carried forward from the previous plan to the new health insurance policy. This means if, after the necessary underwriting, you are allowed to port or migrate to a new plan, the waiver of all the relevant waiting periods is guaranteed depending on the seniority of your previous plan.

Most Insurance companies offer continuity for even the No-Claim Bonus under a few scenarios. Let me explain this with the help of an example:

Current Health Insurance:

Let's say the existing Sum Insured: 5 Lacs, No-claim Bonus: 2.5 Lakhs. Hence Total Coverage is 7.5 Lakhs

Scenario-1

If you move to 5 Lakhs Sum Insured of a different plan, the bonus doesn't get carried forward under portability/migration and you will the seniority only for the Sum Insured i.e. 5 Lakhs

Scenario-2

If you shift to a 7.5 Lakhs Sum Insured plan, then the policy document for the new plan will specify that continuation benefits are applicable for the total amount including the previous bonus. i.e seniority given for a total of 7.50 Lakhs

Scenario-3

If you shift to a 10 Lacs Sum Insured plan, even then the continuity is given for the total amount i.e. 7.50 Lakhs including the bonus. However, in this case, the additional sum insured beyond 7.50 Lakhs i.e. the balance 2.50 lakhs will have the regular waiting periods applicable as per policy terms.

Scenario-4

If you shift to a 6 Lakhs Sum Insured plan, then the conituity benefits are given only for 6 Lakhs


Summary:

Continuity for the no-claim bonus is still possible under Portability/Migration if one opts for a new Sum Insured which is Equal or More than the total of both Sum Insured+Bonus from the previous plan.


Hope this answers your query.


Satish Kumar H



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