Disadvantages of Health Insurance Portability

Quick Overview

Disadvantages of health insurance portability include higher premiums, risk of rejection, new waiting periods for added coverage, and a paperwork-heavy process. Although portability allows you to switch insurers without losing the waiting period you have already served, the new insurer still reassesses your medical history. They can reject your application, offer worse terms, or, if disclosures are incomplete, claims can become an issue. Since the process is tied to renewal, even minor issues can derail the switch and increase the risk of a coverage gap. In many cases, staying with your current insurer is the smarter choice.

Switching your health insurer feels appealing at first, especially when a new plan promises better coverage at a lower price. But porting your health insurance is more complicated than it sounds.

The disadvantages of health insurance portability are real: your medical history gets re-evaluated, which can lead to higher premiums or rejection of your application.

In this article, we walk you through what portability of health insurance is, its disadvantages, key benefits, and the IRDAI rules for porting in India.

What Is Health Insurance Portability?

Health insurance portability is an option that allows you to transfer your existing health insurance policy from one insurer to another at renewal. The core promise of portability is that you can carry forward the waiting-period credits you have already served.

Let’s say you are with Insurer A and have already completed two years of your pre-existing disease (PED) waiting period. If you port to Insurer B, the new insurer must give you credit for those two years.

Think of it as porting your SIM card: you switch providers and keep the same number.

IRDAI introduced this right to portability in 2011 to encourage competition and protect policyholders from being stuck with poor service. But as you will see below, the right to port and the reality of porting are two different things.

Disadvantages of Health Insurance Portability

1) Re-evaluation of Medical History

When you port, the new insurer treats you like a new customer for underwriting purposes. They will review every claim you have made, every condition you have disclosed, and your current health profile.

If someone’s health has changed since they first bought the policy, for example, they developed diabetes, the new insurer may apply loading charges, add fresh waiting periods, or new exclusions.

2) Bonus Does Not Transfer

Many policyholders assume their no-claim bonus (NCB) follows them when they port. However, the actual bonus accumulated with your old insurer does not transfer as an extra sum insured.

Let’s say you have a ₹10 lakh policy currently with a ₹5 lakh bonus. If you port for an increased base sum insured (SI) of ₹15 lakh, you carry forward the waiting periods for the entire ₹15 lakh. But if you were to port only for ₹10 lakh, the bonus amount does not carry forward.

3) Time Sensitive Process

As per the health insurance portability rules in India, you should submit your porting request at least 30-45 days before your renewal date, though insurers may accept it up to the last date itself. If you miss this window, you cannot port that year. On top of that, porting is a time-consuming and documentation-heavy process, and any delays can push the entire timeline past your renewal date.

4) Chances of Rejection with New Insurer

Porting is your right in theory, but it is not always guaranteed in practice. The new insurer has full authority to reject your application after reviewing your medical history. Worse, if the rejection happens close to or after your renewal date, you could face a coverage gap.

5) Higher Premiums than Expected

The quote you see initially and the premium after underwriting can be very different numbers. Insurers may apply loading charges based on your age, health history, and risk profile. Many applicants go through the whole porting process, and then receive a premium so high that the switch makes no financial sense.

6) Difficulty in Increasing Sum Insured

If you want to port and also increase your sum insured, that additional coverage is subject to fresh waiting periods. So, if you are moving from a ₹15 lakh plan to a ₹20 lakh plan, the extra ₹5 lakh will come with fresh waiting periods.

7) Claim Rejection Due to Non-disclosure

The new insurer evaluates your application freshly. Anything you do not disclose will not be covered. For example, if a policyholder had a claim for heart disease with their old insurer but ported to a new insurer without disclosing this condition, any related claim may be rejected. So, any condition that existed but was not properly declared becomes grounds for claim rejection, even if it was covered under your old policy.

8) Porting Is Discouraged in Practice

Insurers are not strongly incentivized to support porting. A customer who ports their policy is often older, more likely to raise claims, and has a clearer medical history than a first-time buyer. Because of this, insurers may see them as less attractive.

As a result, some customers run into issues such as slow underwriting, rejections, or mandatory add-ons that may be unnecessary, making the switch feel like it's not worth it.

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Key Benefits of Porting Your Health Insurance

The disadvantages are real, but to give you the full picture, here are some of the benefits of porting your health insurance.

Waiting Period and Moratorium Credit

You carry forward the time already served for waiting periods and the moratorium period, which limits how long insurers can question your disclosures.

Access to Better Plans

You can switch to a plan with new-age benefits like unlimited restoration and bonus without any cap, broader coverage, and fewer restrictions.

Escape Poor Service

If your insurer has a track record of delayed claims, weak support, or a frustrating claims experience, porting lets you switch to a better alternative.

No Coverage Gap

If you port within the required timeline, your new policy begins as soon as the old one ends, so your health insurance coverage continues without a gap.

Health Insurance Portability Rules in India

Here is a quick summary of the key health insurance portability rules by IRDAI that you need to know.

Disadvantages of Health Insurance Portability

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Ditto's Take on the Disadvantages of Health Insurance Portability

At Ditto, we advise most customers to stay with their existing insurer rather than porting to a new one. Around 7 out of 10 people who come to us considering a switch are better off staying where they are if:

They have been with the old insurer for 3 or more years
Their health profile is not perfectly clean, or new ailments have been diagnosed
They are expected to undergo a treatment soon
They are already with a reasonably good insurer

The important thing to remember is that you are not carrying forward your relationship. You are only carrying forward the waiting period clock. Do not trade the loyalty you have built for a slightly better-looking plan because, in most cases, the disadvantages outweigh the benefits.

Frequently Asked Questions

Does the moratorium period get carried forward when porting?

Yes. The moratorium period already served under your old policy is carried forward when you port. Porting does not reset the 5-year clock, and the new insurer must continue counting from where the previous insurer left off, as long as coverage remains continuous.

What happens if I port my health insurance?

If approved, you move to the new insurer at renewal and retain continuity benefits such as waiting-period and moratorium credit. The new policy starts where the old one ends, so there is no break in coverage.

What happens if I do not disclose a pre-existing condition while porting?

If you hide a pre-existing condition when porting, the new insurer can later reject related claims. Porting involves fresh underwriting, so incomplete or inaccurate disclosures create serious claim risk. Disclose your full medical history, even if the condition was covered under your old policy.

Should I port my health insurance or buy a new one?

Port if you want a better insurer without losing the waiting period and continuity benefits already earned. Buy a fresh plan only when portability is unavailable, unsuitable, or you are comfortable starting over for a better fit. The right choice depends on your insurer, health profile, and coverage gaps.

Is it always a good idea to port health insurance to a better plan?

Not always. Porting makes sense when service is poor, claims handling is weak, or your plan has low coverage or restrictive terms. But if you have been with your insurer for a long time, served key waiting periods, or have a complex health profile, staying is often safer.

Last updated on: 19 Apr, 2026