General Insurance council in a move to bring cheer to health insurance policyholders, are finalising the contours of a new product that will have a common minimum standard cover and will be renewable and portable across companies.
This will mean the insurance companies will not be refuse renewals on grounds of adverse claims

Similarly, all benefits will continue to be available to an insured person even if he or she switches to a new company.In addition, cumulative bonus and discounts will also be available after the change.

Insurers will approach the Insurance Regulatory and Development Authority for approval of the new product that will come with all these features later this month in August.

Health insurance policies contain the renewability clause that specifies the type of the contract and terms for renewal, which are of three types. The first type is optionally renewable, where the insurer has the option to renew the policy on its terms. This is the cheapest policy for the insured.

The second type is guaranteed renewability, the premium rating for which depends on the claims experience. The third type, which is the most expensive variant, cannot be cancelled and renewal is guaranteed, but the price can vary.