The Insurance Regulatory and Development Authority of India (IRDAI) has come up with fresh instructions to make the process of health insurance portability easier and ensure continuity of benefits for account holders of banks for group insurance schemes.
According to IRDAI’s circular dated October 7, 2020, if you are holding an indemnity-based group health insurance policy along with your bank account then you are now allowed to migrate to a different insurer providing indemnity-based group health insurance policy to the bank.
An indemnity-based plan reimburses the actual expenses during hospitalisation up to the total sum insured.
IRDAI also states, "The portability will be offered subject to the option exercised by an individual member of the group policy."
A maximum of three health insurance providers are allowed to tie up with a bank to offer health insurance cover to account holders. So, let's assume bank X has tied up with insurers A, B, and C. As an account holder, you have an indemnity-based group health insurance policy, which has been issued by insurer A. However, if you are not happy with the policy you can switch to policies offered by insurers B or C.