Upside

Good News for Mediclaim policyholders. Soon portability would be allowed to mediclaim policyholder with a mediclaim policy of sum assured of one lakh or more. In simple terms, it can be compared to the much talked about mobile service provider portability. Customer or policy holders, who are not satisfied with the service of their existing service providers, will be able to switch to another insurer soon without any change in the premium outgo. However, this facility will be available to those policyholders who are insured for a sum of Rs 1 lakh and above, to begin with. It has been decided to widen the cover, according to the recommendation submitted by the General Insurance Council, an association of non-life insurers.

The policyholders will be able to switch their health cover providers with the same benefits retained once they have bought this cover.

Downside

However, under the proposed new policy, after the expiry of the term, if one intends to switch over to a new company, the accumulated bonus is not carried forward and one has to start all over again.

At present, a policyholder is given health cover for a year and the same has to be renewed every year. If there is no claim, the policyholder is entitled to a bonus in the form of increased sum and for every claim-free year, this bonus gets accumulated.

For senior citizens it becomes all the more difficult because companies are reluctant to sell new mediclaim policies to the elderly.

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