Health insurance companies to offer a common policy that will allow clients to switch between companies with no extra expenditure
Health insurance companies to offer a common policy that will allow clients to switch between companies with no extra expenditureNot happy with your Mediclaim insurance provider? You will be able to change your insurance company without buying a new health insurance policy by June 2011.u00a0
The General Insurance Council of India, a statutory body created under the Indian Insurance Act of 1938, has submitted a common Mediclaim insurance policy to the Insurance Regulatory and Development Authority for approval last month. Health insurance companies had submitted their plans for a common policy to the Council last year.u00a0u00a0u00a0u00a0
If this policy comes into effect, insurance holders who are dissatisfied with the services of their health insurance company can shift to another company without any inconvenience, as the terms and conditions of their policy will remain the same. At present, if a person wants to change insurance companies, he has to buy another insurance policy.
Insurance holders and city hospitals have welcomed the move. Breach Candy Hospital CEO, Maj Gen Vijay Krishna (Retd) said, "Insurance portability will be good for the insurance holder and the hospital administration will have to deal with one common plan, which will make work simpler for them."
"If such an option is available, insurance companies will provide the best services in a bid to retain customers," said 35 year-old engineer Swapnil Shah, who went through much trouble claiming Mediclaim following his mother's hospitalisation in November.
K G Rao, CEO, Future Generali India Insurance company said the move will be advantageous to insurance holders. "With portability, insurance companies will have a product common to all major health insurance companies. The statutory body is wording the product and it is expected that it will have wide coverage and clearly defined terms. This is clearly an advantage to holders who will now have an opportunity to change their insurance company easily," he said.
Insurance company officials said that smaller companies tend to outsource their services while dealing with claims. "Once portability is announced, insurance companies will have to upgrade their servicing section to meet the demands of the clients," said an official from a reputed insurance company, who did not wish to be named.
2 private insurance companies work exclusively in the health sector: Apollo Munich and Star Health
4 public sector players such as New India Insuranceu00a0u00a0
8 private insurance companies offer health insurance, including Bajaj Alliance and ICICI Lombard
