Health insurance holders will soon have the choice to switch over to another company under the new portability option being chalked out by the Insurance Regulatory and Development Authority (IRDA).
The move is expected to increase quality of services and encourage healthy competition among health insurance firms.
The norms would be ready by next month.
“Draft guidelines on portability of health insurance policies will be issued by February end,” said J Hari Narayan, chairman, IRDA, on the sidelines a function organised by the Insurance Brokers Association of India.
At present, there is portability facility on motor insurance policies only.
Under the portability option, the financial bonuses, pre-existing disease requirement will also get carry forward, he said.
The guidelines for initial public offerings for life insurance companies will be ready by early February, he added. “Our regulation for IPO of life insurance companies must be ready in two to three weeks.”