InsuranceFinancial Glossary
Portability
Definition
The ability to transfer your health insurance policy from one insurer to another while retaining benefits like accumulated waiting period credits and No Claim Bonus. IRDAI mandates that all insurers must accept portability requests made at least 45 days before renewal.
Why It Matters
Portability prevents insurer lock-in. If your insurer has poor claim settlement or you find a better plan, you can switch without losing years of waiting period credits. Without portability, switching insurers would mean restarting all waiting periods from scratch, which could be 2-4 years for pre-existing conditions.