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Khaleej Times
2 days ago
- Khaleej Times
What UAE travellers need to know: Does travel insurance cover war, conflict?
Recent travel disruptions across the Middle East region have contributed to an uptick in demand for travel insurance. Travellers are actively seeking protection against such contingencies, an insurance company confirmed to Khaleej Times on Thursday, a week after Israel and Iran exchanged missile attacks. UAE airlines have been forced to extend flight cancellations to several destinations – including Iraq, Jordan, Lebanon, Iran, and Israel – due to the rapidly spiralling armed conflict. Some travellers from the UAE have changed their destinations at the last minute. In contrast, others have deliberately chosen countries unaffected by suspended air routes, hoping to avoid any surprises that could delay their return. Still, many Emiratis and expats are gearing up for summer travel, as they do every year. For them, travelling is not just a vacation; it's a personal or family tradition that they are unwilling to abandon. It's important to note, however, that most standard travel insurance policies do not cover claims arising directly from geo-political unrest or military conflict. Stay up to date with the latest news. Follow KT on WhatsApp Channels. Toshita Chauhan, chief business officer–general insurance at explained to Khaleej Times, "Claims arising directly from geo-political unrest or military conflict remain excluded under typical policy terms. "A standard travel policy offers financial protection against baggage loss, medical emergencies, trip delays, and cancellations but does not provide compensation for in-flight events or operational airline failures unless linked to broader delays or trip curtailment," she added. "That said, for issues like missed connections, baggage delays, or last-minute cancellations due to operational failures, travel insurance is proving to be a critical safeguard," underscored Chauhan, noting: "Recent travel disruptions across the Gulf, particularly flight delays, cancellations, and temporary airspace closures, have contributed to a perceptible uptick in demand for travel insurance, with trip cancellation and flight delay coverage emerging as some of the most searched-for features." Triggered by Air India plane crash Another incident that "undoubtedly triggered a rise in consumer interest," according to Chauhan, was the Air India plane crash that reportedly left all people aboard the plane – except one – dead. Chauhan said, "The Air India incident has undoubtedly triggered a rise in consumer interest but with an important distinction. What many travellers are looking for is flight protection or airline coverage, which differs from traditional travel insurance. We've seen a spike in queries related to coverage scope, indicating that travellers are more discerning now—they are asking the right questions and seeking clearer coverage terms before purchasing." How important is travel insurance? While not every country mandates travel insurance for incoming tourists, an increasing number of nations have incorporated it into their entry requirements, particularly in the post-pandemic era. Chauhan said, "Countries within the Schengen zone, for instance, require travellers to have a minimum coverage of €30,000 (Dh126,387) for medical emergencies. Similarly, destinations like Thailand, Turkey, and certain Gulf nations have introduced mandatory travel insurance policies for specific visa categories." "The global trend is clearly shifting toward stricter health and financial safeguards for visitors, and travel insurance plays a critical role in this framework," she added. It's not just a precaution For Chauhan, purchasing travel insurance is not just a precaution — it's a smart financial decision. This comes with rising international medical costs, where a single hospitalisation abroad can run into thousands of dollars. "Travel insurance offers comprehensive protection against such expenses, including emergency medical treatment, trip cancellations, baggage loss, flight delays, and even Covid-19-related disruptions," she added. Some foreign embassies in Europe, North America, and certain Asian countries also now require proof of insurance as part of visa applications. UAE expats travelling to their home countries are also increasingly opting for travel insurance as part of their travel checklist, mindful that even a short visit can expose them to unexpected costs due to medical emergencies, baggage mishandling, or flight issues. Double-digit price increase Meanwhile, even before the recent Israel-Iran missile attacks erupted, travel insurance premiums in the UAE have surged at a double-digit rate, particularly for Europe-bound travellers, ahead of the peak outbound travel season. According to Policybazaar UAE, travel insurance premiums have risen by 12 per cent to 18 per cent year-on-year. This translates to an increase of Dh15 to Dh70 per policy, depending on the travel duration, destination, and age of travellers. Hitesh Motwani, deputy CEO at earlier told Khaleej Times there are "tailored policies that allow travellers to choose coverage that fits their specific needs and financial plans. "Despite the recent hikes, travel insurance remains relatively affordable on a per-trip basis," he added.
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Business Standard
13-06-2025
- Business
- Business Standard
Ahmedabad Air India crash: All about insurance safety net and beyond
The death of 241 passengers on-board London-bound Air India flight -- which crashed in Ahmedabad on Thursday afternoon -- has trained the spotlight on passenger rights, insurance liabilities, and what families can claim after such disasters. We spoke to four experts to break it down. Airline liability and Montreal Convention Under the Montreal Convention, airlines are strictly liable up to 151,880 Special Drawing Rights (SDRs), an international asset class created by the International Monetary Fund, which is about Rs 1.7 crore, without needing to prove fault, says Sajja Praveen Chowdary, director at Policybazaar for business. Beyond this, compensation can be claimed only if the airline was negligent. However, this applies only to international flights between signatory nations, clarifies Sudhish Ramteke, associate director at Anand Rathi Insurance Brokers. In India, domestic flights follow the Carriage by Air Act, 1972, with similar provisions but typically lower compensation and more legal hurdles. Vaibhav Kathju, chief executive officer of Inka Insurance, adds that for domestic travel, the liability is capped at 100,000 SDRs about Rs 1.1 crore. However, payments can be delayed if fault is in dispute, and actual disbursal may depend on negotiations or court proceedings. Travel Insurance: A crucial extra layer of protection Most standard Indian travel insurance policies do provide accidental death benefits, which are paid in addition to airline compensation, says Ramteke. These fixed lump-sum payouts can range from Rs 10 lakh to Rs 1 crore, depending on the policy. According to Manish Kumar Goyal, chairman and managing director at Finkeda, such policies must be purchased voluntarily, often at the time of booking. Exclusions may include travel under the influence of alcohol, invalid tickets, or pre-existing medical conditions. Kathju highlights that insurance payouts are faster and more straightforward than airline compensation, which often involves legal proof and timelines. Policies also usually cover medical evacuation, repatriation of remains, and emergency hospitalization. Employer's group covers: What happens if death occurs on duty? If the victim was on official duty, corporate insurance can provide crucial support. Most employers offer Group Term Life Insurance (GTLI) and Group Personal Accident (GPA) policies. 'These can range from 2 times to 5 times of annual salary or a fixed sum insured,' says Kathju. Government employees may receive additional benefits through schemes like CGEGIS. But coverage varies widely across private companies, and small businesses may offer minimal or no protection. Goyal notes that accidental death on duty may also attract double indemnity payouts, depending on the policy. Personal term insurance: Claim all you're eligible for Personal term life insurance is completely independent of any other insurance, be it group cover, travel insurance, or airline compensation. Chowdary from Policybazaar says that there is no overlap and families can claim from all sources. Goyal adds that all payouts under Section 10(10D) of the Income Tax Act are tax-free in India, provided policies follow IRDA norms. Airline payouts, being compensatory, are also not taxable. However, travel insurance payouts under some clauses might have different tax implications, so consulting a tax advisor is advised. Credit card coverage: Often overlooked Premium Indian credit cards such as HDFC Infinia, SBI Elite, or Axis Magnus offer complimentary air accident insurance, if the ticket was booked using the card, says Kathju. The cover may include sums up to Rs 1 crore, but only for commercial flights, and excludes events outside the aircraft. Documents like a death certificate, boarding pass, and ticket copy are needed for claim processing. Cardholders should ensure the policy is activated, as some insurers require registration via the bank portal.
Mint
12-06-2025
- Health
- Mint
₹1-crore health cover is fast becoming a necessity. But how to buy one?
In 2016, Hyderabad-based Ankur Pathak's mother-in-law was diagnosed with Stage-III ovarian cancer, barely a month or two after undergoing angioplasty. The back-to-back medical emergencies left the family with limited funds to manage the treatment costs. Though she had a reimbursement-based government health cover, the procedural delay and out-of-pocket expenses proved overwhelming. She passed away within three months, unable to continue chemotherapy. The experience made Pathak realize the importance of having a strong insurance cover with adequate immediate support, regardless of employer-provided plans. He opted for ₹50 lakh base coverage, which would increase to ₹1 crore with no-claim bonuses. Also Read: Health insurance vs medical corpus: What should senior citizens prioritize? More Indians are opting for ₹1-crore health covers as medical costs rise. Online insurance platform Policybazaar saw the number of such policies surge to 9,739 in 2024 from 4,427 policies in 2023. 'In 2025, we've already sold 7,521 such policies by May," said Siddharth Singhal, health insurance head at Policybazaar, noting an 85% growth expectation for the year. Why ₹1 crore? Insurance advisors say ₹1 crore may feel excessive today, but five to 10 years down the line, it could be just about right. Medical inflation is pushing costs up fast. Data from the surgery-care company Hexa Health showed that the average severe illness claim in India doubles every 10 years. For example, cancer treatment costs that hovered around ₹2-3 lakh in 2015 now average ₹4-6 lakh, and could touch ₹9 lakh by 2035. Meanwhile, a heart bypass that cost ₹3 lakh a decade ago may cost over ₹6 lakh by 2035. While average treatment costs for severe illnesses provide a baseline, actual expenses often run significantly higher, especially in private hospitals and metro cities, where charges can be 2-3X the national average. Additionally, illnesses rarely occur in isolation; follow-up treatments, diagnostics, and medications add recurring costs over time. One practical way to secure comprehensive coverage is to opt for a ₹1 crore base health insurance policy directly. Take Hyderabad-based Niraj Dugar, a 34-year-old financial planner who holds such a plan. He finds his annual premium of around ₹27,000 manageable, noting that insurers don't charge proportionally more for a significantly higher sum insured. For him, this coverage is essential, not just for today's hospital bills, which can run into lakhs for a single week's stay, but to stay ahead of relentless medical inflation. Before covid-19 hit, Bhumica Aggarwal's father, a businessman from Meerut, invested in a ₹1-crore policy, realizing the premium bump for higher coverage was 'not much'. Five years later, at 67, he happily renews it at ₹87,000 per year. Though claims have been minor, he values it as a critical 'safety net'. Also Read: Why health insurance during and after pregnancy is essential Preeti Zende, a Sebi-registered investment advisor, said a ₹1-crore cover is within reach for anyone with a disposable income of ₹1 lakh or more. To balance affordability, Zende advises gradually increasing coverage. But if one delays it too long, a sudden illness like cancer could prevent them from receiving upgrades. Why start early? 'Even if health issues arise, insurers are more likely to accommodate sum increases for existing policyholders, sometimes with a premium loading or waiting period, than accept fresh applications after diagnosis because getting coverage after it's detected is near impossible," said Zende. One of Zende's clients had opted for a ₹1-crore health cover, combining a base policy with a super top-up. When cancer was diagnosed, the coverage proved critical. Had they waited until after diagnosis, insurers would have outright rejected their application. One of the most popular ways to afford a ₹1-crore health cover is to combine a base policy with a super top-up plan. According to Policybazaar, 80% of its customers opt for a ₹10-lakh base policy paired with a ₹90-lakh super top-up combination compared to other combos. However, Zerodha-backed insurance advisory firm Ditto Insurance warned that while this combo keeps premiums low, super top-ups often come with conditions that can limit how much of the cover one actually uses. 'Super top-ups can have room rent or disease-wise limits. One must understand those conditions and avoid them if possible." If the base and super top-up dates don't align, one may also end up juggling two renewal dates and premium payments. Even so, for those prioritising affordability, this combo remains a go-to. Comprehensive coverage vs super top-ups Ditto Insurance has observed a recent shift: people with higher financial capacity are moving toward comprehensive health plans that automatically increase the sum insured each year, up to a certain cap. These plans often include loyalty bonuses, unlimited restoration benefits, and cover for consumables—benefits that in many cases offer better value than a super top-up. While these policies come at a slightly higher cost, many find them more straightforward and practical. This is what Pathak chose after his mother-in-law passed away. He paid a premium of ₹1.15 lakh for a three-year renewal this year. Starting 2024, insurers in India have come up with health plans that offer 'super bonus" features, typically as add-ons that boost your cover each year, sometimes up to an 'unlimited" sum insured. Priya Deshmukh, head of health products, operations and services at ICICI Lombard, explained that the Elevate plan's 'power booster" add-on 'provides 100% of cumulative bonus annually of the base sum insured every year on year with no cap, thus unlimited sum insured, regardless of whether a claim is made in the preceding year." Aditya Shah, founder of Hercules Insurance Advisors, called these the 'first option" for those targeting high coverage. When bought early, such plans can grow to ₹3-5 crore over the years. He suggested that a ₹1-crore health insurance policy may be unnecessary, due to the availability of newer 2024 plans with features like annual cover increases. Shah described such plans as more 'sustainable" long-term options compared to high-premium ₹1-crore covers, especially as premiums become unaffordable with age. However, Ditto pointed out that super bonus add-ons, especially those with unlimited accumulation, do not have the same level of security as a base plan does when it comes to lifelong renewability and pricing. There is a risk that insurers might increase the price of these add-ons significantly in the future if the claims associated with these benefits become unsustainable. Also Read: Not many claim mental healthcare insurance. Here's why In the case of the super bonus add-ons, especially those with unlimited accumulation, if you opt out of this cover at the time of renewal, all the bonuses accumulated under the power booster will be reduced to zero. What's the cost-effective way? Experts suggested gradually increasing the sum insured year after year. Next best is the popular base ( ₹10L) + super top-up ( ₹90L) combo—affordable but with hidden limits. Comprehensive plans with in-built increasing cover come third—pricier but packed with features. New 'unlimited growth" policies rank fourth—great on paper, but can be expensive in the long run. What's the simplest but most expensive option? Buying a full ₹1-crore base policy outright—smooth claims but heavy premiums. Vedant Vichare is a contributor to Mint.
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Business Standard
10-06-2025
- Business
- Business Standard
Mutual Fund strategies you can steal from India's best portfolio managers
Even India's top portfolio managers—seasoned with decades of experience and backed by sophisticated research—make mistakes. The latest Morningstar report, The Hits and Misses of Top Portfolio Managers – India, offers a rare behind-the-scenes look into how some of India's best-known fund managers handle both success and failure. Lesson 1: Discipline Beats Perfection Manager to Watch: Sankaran Naren, ICICI Prudential AMC Naren, one of India's most respected fund managers, runs the ICICI Prudential Value Discovery Fund. He's a master of value investing, buying stocks that are temporarily out of favor but fundamentally approach is rooted in being flexible and pragmatic. For instance, during 2021–22, he significantly reduced exposure to overheated sectors like IT and basic materials, and simultaneously increased his bets on energy and healthcare stocks. This sectoral rebalancing led to strong alpha generation. Yet, he isn't immune to misses. His contrarian investment in Vodafone Group ADR didn't play out well due to weak revenue, rising debt, and strategic uncertainty. Still, Naren held onto the position, trusting his long-term thesis, and was eventually rewarded when the stock rebounded. His investment mantra is simple but powerful: make fewer mistakes, learn from each one, and stay disciplined. Hit: In 2021–22, he shifted away from IT and materials just before they fell, and increased exposure to energy and healthcare—moves that boosted the fund's returns by over 7%. Miss: His contrarian bet on Vodafone's global ADR didn't work, hurting returns. But he didn't panic-sell—instead, he held on with a long-term view. Investor takeaway: Don't expect to be right every time. Instead, focus on making fewer mistakes, being adaptable, and staying committed to high-conviction ideas. Lesson 2: Stick to Quality—Even When It's Unpopular Manager to Watch: Neelesh Surana, Mirae Asset Mutual Fund Surana is known for his calm, research-led stock selection. He looks for strong businesses with good leadership, even if the market is chasing hot has built a reputation for holding strong companies even through volatile phases. His early bets on tech-driven companies like Zomato (Eternal) and Policybazaar (PB Fintech) illustrate this approach. Despite initial market skepticism, Surana stayed invested through short-term volatility, confident in the companies' long-term potential. Both stocks delivered impressive returns in 2024, validating his research-driven conviction. However, his disciplined stance meant underperformance at times. He avoided sectors like industrials and PSUs during their rally in 2023-24 due to valuation concerns. While peers benefited from these upswings, Surana stuck to his belief in quality and stayed away from cyclical hype. Hit: He invested early in tech startups like Zomato and Policybazaar. Despite initial market skepticism, he held on—and these stocks surged 125–138% in 2024. Miss: His reluctance to invest in industrials and PSU banks during their boom phase caused short-term underperformance. Investor takeaway: Focus on long-term fundamentals, not hype. Some of your best investments will be the ones nobody believes in—yet. Lesson 3: Play It Safe with Debt? Do It Right Manager to Watch: Suyash Choudhary, Bandhan Mutual Fund Fixed income investing is often about stability, but Suyash Choudhary, Head of Fixed Income at Bandhan Mutual Fund, brings tactical finesse to it. Known for his macroeconomic expertise, Choudhary takes duration-based calls based on interest rate trends and monetary policy expectations. In 2023, anticipating a shift toward rate cuts, he increased the duration of Bandhan Dynamic Bond Fund significantly. This timely call allowed the fund to outperform peers as rates softened and bond prices rose. However, not all his calls worked perfectly. In 2021, overexposure to G-secs hurt returns when corporate bonds outperformed. And in 2022, an unexpected RBI rate hike took the market (and his fund) by surprise. Despite setbacks, Choudhary's consistent, well-reasoned strategy has paid off in the long run, making him one of the most trusted fixed-income managers in India. Hit: In 2023–24, he increased the duration of his bond funds anticipating RBI rate cuts—his Dynamic Bond Fund became a top performer. Miss: In 2021, he went heavy on government bonds when corporates were outperforming. Plus, an unexpected RBI rate hike in 2022 caught him off guard. Investor takeaway: Even in low-risk investments like debt funds, timing and macro understanding matter. Choose debt fund managers who read the interest rate cycle well and adjust strategy accordingly. For long-term gains, discipline and foresight are key. Lesson 4: Conservatism Can Still Win Manager to Watch: Shobhit Mehrotra, HDFC Mutual Fund Shobhit Mehrotra, HDFC's veteran fixed income manager, is the classic conservative investor. His style favors capital preservation, superior credit quality, and consistency over eye-catching returns. While this may lead to underperformance in bullish phases, it helps avoid deep drawdowns. For example, during 2021–23, while many peers chased high-yield, lower-rated bonds, Mehrotra stuck to top-rated securities and maintained portfolio liquidity. His HDFC Medium Term Debt Fund benefitted when credit risks rose again, outperforming many peers. However, his Credit Risk Fund lagged in earlier years due to low exposure to riskier, high-yield papers that performed well in buoyant markets. His success lies in staying true to a quality-first approach, even when it isn't trendy. When the rate cycle turned favorable again in 2023–24, Mehrotra's strategy paid off with top-quartile performance. Hit: In 2023–24, he stuck with quality AA and AAA bonds, avoiding the risky, low-rated segment. His Medium Term Debt Fund delivered strong returns. Miss: Being too conservative in earlier years meant he missed out on high-yielding credit opportunities in 2021–2022. Investor takeaway: If you're a risk-averse investor looking for stable returns, conservative debt funds can still deliver—especially in volatile times. Key Takeaways for Investors Mistakes are part of the game: Don't aim for perfection—aim for consistency and discipline Stick with your convictions: Ignore noise and back businesses you believe in Quality matters: In both equity and debt, don't compromise on fundamentals Be patient: Good ideas may take time to work—avoid panic selling Understand risk Choose funds (or stocks) that match your risk tolerance What you can do now: Review your mutual fund portfolio: Are your managers consistent and aligned with your risk profile? Avoid chasing recent winners: Look deeper into strategy and track record, not just past 1-year returns. Diversify: Mix value and growth, equity and debt—just like the pros do. Think long-term: Even the best funds underperform sometimes. Stick with quality managers through the cycle. "The quest for flawless portfolio managers is a fantasy. Even the best investors make mistakes, underscoring the importance of adopting a long-term perspective when evaluating portfolio managers' capabilities. It is essential to consider the frequency of misfires and whether these missteps align with the manager's style, philosophy, and experience. The portfolio managers highlighted above possess many valuable attributes, including their emphasis on fundamentals, willingness to go against the tide, long-term focus, and measured risk-taking, all of which allow them to unearth great investment opportunities. Equally important, they maintain a candid attitude toward their errors, consistently reflecting on and learning from them, which we believe is crucial for enhancing future returns," said Morningstar in its report.
Time of India
09-06-2025
- Business
- Time of India
Planning to port your health insurance plan? Here are some challenges you should be aware of
When Pune-based Diwan Varma's father had to be admitted to a hospital twice in quick succession, the insurer paid for the first hospitalisation and rejected the second claim, stating that it was for a pre-existing disease not disclosed earlier. While Varma was awarded the claim after escalating the issue to the insurance ombudsman in 2022, he was disillusioned enough to decide to shift to another health insurer. Being frustrated with long claim settlement delays or poor service by your existing health insurance company may not be the only reason you would want to dump your health plan and opt for a new one. You could be stuck with a policy bought over 10 years ago that has a room rent sublimit, co-payment and a very low cover size, or perhaps you'd rather have a plan that offers restoration, OPD and day-care benefits. 'Insurers have introduced many new plans that are not only more affordable, but are also packed with innovative features tailored to evolving consumer needs. Around 64% of customers who opt to port their health insurance policies cite the pursuit of better coverage at similar or lower premiums as their primary reason, especially given the rising medical inflation in India,' says Siddharth Singhal, Head of Health Insurance at Policybazaar. While it is a good idea to shift to a different plan for enhanced benefits, the transition may not always be the quick-fix solution you would expect. Here are some things to keep in mind before taking a decision to find a new health product and insurer. Should you port or migrate your plan? The first step is to know the difference between moving to a new product with the same insurer (migrating) and shifting to a different plan with a new insurer (porting). 'Deciding between migrating and porting depends entirely on your specific requirements, health needs and satisfaction with your current insurer,' says Pankaj Shahane, Head of Health Claims, Digit Insurance. 'Porting may be a better option when one is dissatisfied with the current insurer's claim service, network hospitals, policy features, or pricing structure,' says Bhaskar Nerurkar, Head, Health Administration Team, Bajaj Allianz General Insurance. One may want features such as wellness benefits, outpatient care, and access to newer or modern medical treatments. Should you port or migrate? Know the difference between the two to be able to take the right decision. 'Migration, on the other hand, is a convenient way to shift to another plan, especially when customers are satisfied with the current insurer and want to explore broader coverage,' says Priya Deshmukh, Head Health Products, Operation & Services, ICICI Lombard. This type of transition to a new plan can also be smoother compared to porting due to the maintenance of continuity with the same health insurer. Migrating also comes with a typically lower risk of underwriting rejections. Problems while porting Porting does offer several benefits because, as per Irdai guidelines, continuity benefits such as waiting periods for pre-existing diseases and specific treatments are transferable. Any no-claim or cumulative bonus can also be credited to your new plan. However, there are hurdles you need to be aware of not only to avoid rejection of your proposal, but also to ensure a smoother transition to the new insurer. Restrictive timeline: A big limitation with porting is that you can shift only during the annual renewal of your existing policy, not mid-term. The window for doing this is at least 45 days before renewal and not before 60 days. So if you have just renewed your policy and realise its shortcomings or face a bad customer service experience, you will have to wait another year before switching your insurer. Another big issue is that you cannot port if your policy has lapsed or does so during the process of porting. So make sure you start the process well before your policy's term ends because the evaluation, medical check-ups and underwriting may take a long time as it is similar to buying a fresh insurance plan. Pros & cons of porting Advantages You can get an insurer with better claim and customer service, and hospital network. You can get an upgraded plan with better features, fewer limits, and lower premium. You can get a plan suited to your medical condition and health needs. Waiting period for pre-existing diseases can be carried over. Accrued benefits and bonus can be moved to new insurer. Drawbacks Underwriting risk is much higher and so is the risk of rejection. You may have to pay a higher premium for better features. You may not be able to get a much higher coverage, especially if you have a claim history. You can move to a new insurer only at the time of renewal. Loyalty discounts and rewards cannot be carried over to new insurer. Underwriting: One of the biggest hurdles while porting is the underwriting process. 'Underwriting usually involves a thorough review of the consumer's claim and medical history, which can impact policy issuance. So, if the applicant has a history of a heart condition, the new insurer may impose exclusions or a waiting period for specific diseases, increase the premium, or even decline the porting request,' says Indraneel Chatterjee, Co-founder & COO, RenewBuy. This is true even if a minor new condition, say borderline high cholesterol, is discovered during the medical check-up, since it could indicate a potentially bigger health problem. 'Before deciding to port your health plan, it's important to assess whether the new insurer's offering aligns both with your current as well as future healthcare needs.' BHASKAR NERURKAR HEAD, HEALTH ADMINISTRATION TEAM, BAJAJ ALLIANZ GENERAL INSURANCE Higher cover limits: If you had bought a basic medical plan before Covid and have a low cover of, say, Rs.3 lakh, you may want to secure a bigger cover. While it is possible to enhance your cover while porting, it may not always be a good idea. Even as the new insurer is bound to offer you a plan that is at least the same size as your existing cover, increasing the sum insured may not make it cost-effective for you. It may be better to opt for a top-up or super top-up plans, which offer a much higher coverage at a lower cost. Secondly, the accrued benefits of waiting periods and no-claim bonus will be carried over only to the extent of your existing cover. 'If you had a sum insured of Rs.5 lakh in your old policy and choose to port to a new plan worth Rs.10 lakh, the benefits of the served waiting periods and accumulated no-claim bonus may apply only up to the Rs.5 lakh limit. For the additional Rs.5 lakh, new waiting periods or other terms of the new policy may apply as per the new insurer's guidelines,' explains Shahane. Adds Chaterjee: 'No-claim bonus may not always be transferred directly; some insurers may adjust it in the new sum insured, while some might not. If the insurer does not adjust it, the consumer might need to start accumulating it from scratch.' Loyalty rewards, other features: While benefits like waiting periods for pre-existing diseases can be transferred during porting, any loyalty discounts offered by the insurer or features specific to your policy will not be shifted. So, if you bought the previous plan with a domiciliary hospitalisation benefit because of your specific medical condition, this feature will not be carried over to the new plan, and the policy you pick may or may not offer it as an inbuilt option. Check before porting Before switching insurers, make sure the new plan bridges the medical gaps and addresses the shortcomings in your existing policy. 'Evaluate key factors, such as the insurer's claim settlement ratio, premium affordability, customer service quality and co-payment or sub-limit clauses, and review exclusions or pending waiting periods in your current policy,' says Deshmukh. Specific features: While focusing on an affordable premium and crucial features, make sure the new plan has features specific to your ongoing medical condition or future requirements, say, maternity benefits if you are planning to start a family. 'It's important to assess whether the new insurer's offering aligns with both current and future healthcare needs,' agrees Nerurkar. OPD & day-care benefits: If you have a lifestyle disease or a family history of lifestyle or mental health illnesses, make sure you opt for the OPD benefit since you will use it more than the in-patient hospitalisation. This also covers dental treatments, teleconsultation, diagnostics and physical consultations. Besides, advanced technology means several treatments can be taken as day-care procedures, such as dialysis, chemotherapy, eye surgery, etc., instead of hospitalisation. 'Underwriting usually involves a review of the consumer's claim and medical history.... and the new insurer can impose exclusions, increase the premium or even decline the porting request." INDRANEEL CHATTERJEE CO-FOUNDER & COO,RENEWBUY Restore benefit: This is another feature that serves well due to the rising healthcare and surgery costs. It allows you to fully or partically recharge the sum insured if you exhaust your limit in a given year. Claim settlement ratio: Check whether the new insurer's claim settlement ratio is the same or better than that of your existing insurer as it reflects reliability and efficiency in settling claims. Portability proposal can be rejected due to… Underwriting risk Since porting is like buying a new policy, it is subject to fresh underwriting and if your health condition, claim history, family's medical history or your age poses a significantly high risk for the new insurer, he has the right to refuse your proposal. Non-disclosure If you accidentally or deliberately fail to give information about a pre-existing illness or disease while filling the proposal form, and it shows up during the medical check-up by the new insurer, your proposal is likely to be rejected. Policy differences Portability is allowed only between similar policies. If you want to move from an indemnity plan to a critical illness policy, or from a group plan to an individual plan, the insurer may decline your request. Also, if you want high coverage compared to your existing plan, it can be denied as being an indicator of an impending health issue. Previous cancellation If there is a history of your previous policy being marked for cancellation or being cancelled for non-disclosure or attempt to misguide, the new insurer can decline your portability request. Procedural issues You are supposed to send in porting request at least 45 days before renewal. If there is a delay or if you submit documents with errors or incorrect information, the new insurer can deny your request. Policy lapse If your policy has lapsed or does so during the process of porting, your new insurer can reject the proposal. It can also be denied if your previous policy shows any renewal gaps in the past.
