Migrating Group Health Insurance: The Scene Behind!

A group health insurance policy is famous among the salaried people for its unique features and benefits offered. One such feature is that the entire premium of the policy is paid by the employer and this is one of the reasons group health insurance has continuously been gaining its importance.

However, most of them wonder if the policy will cover them or the benefits can be rolled over to a separate policy?

Let’s know about this!

Migrating Group Health Insurance to Individual Policy

The members of a group health insurance shall have the right to switch to an individual policy. This can be ensured as per the norms of health insurance only. As per the IRDA guidelines, individual members covered under an employer’s health insurance shall have the right to port the policy to an individual policy. It can be transferred to a family floater as well with the same insurer. This means the policyholder holds the right to avail portability with any other insurance provider.

This can be done as per the health insurance rules. It states that an employee can migrate to an individual health insurance policy thereby transferring the benefits of any waiting period availed as a member of the group policy. It holds true for members of any group insurance cover.

How Does Group Health Insurance Work?

The coverage offered under group health insurance is almost similar to an individual plan, where the insured is covered for medical expenses incurred during hospitalisation or illness. A master policy is issued to the employer, where a group of employees are covered against a sum insured and a fixed premium. The premium is usually paid by the employer, where the employees get a health card with coverage details. The policy is for one year after which it needs to be renewed.

Period of Coverage

The policy is active and covers the insured until he/she in the organisation. The moment he/she ceases to be an employee; the policy no more will cover the person. In that case, the cover for the dependents that are covered under the policy also will automatically cease.

Benefit of Migration

The waiting period clause is one of the primary benefits for migrating group health insurance. Every individual policy comes with a waiting period to cover pre-existing illness. In case of porting, the years served with the policy will be considered as the waiting period and the individual will be given credit based on the number of years of coverage. So, no further waiting has to be served with the new policy.

The Migration Process

To initiate the process of porting, the insured should approach the same insurance policy, at least 30 days prior to his/her last working day. Well, just for your knowledge, you can’t port a policy until you’re with the organisation. The process will require the applicant to provide some additional information as well before issuing the policy. At the time of porting, one may need to provide documents like proposal form, portability form, copy of registration or retirement signed and stamped by the office authority etc.

What should be Your Call!

Having a separate individual policy in addition to a group health insurance always works well. However, you should be careful about the underwriting which may create a problem. Moreover, bear in mind that the premium for an individual policy will be anyway higher than a group health insurance. So, carefully opt for a policy that suits your requirements and budget at the same time.