Switching jobs? You can retain your company health cover—but only if you act fast
If you’re switching jobs, don’t forget to carry forward your health insurance. Most salaried employees in India are covered under a group health policy offered by their employer. While this cover may seem like a safety net, it lapses the moment you leave your job—unless you takeaction.
Many employees don’t realise they can convert their group health cover into a regular health insurance plan when they leave a company. This provision allows you to retain continuity benefits—such as the waiting period already served for pre-existing diseases.
Here’s how it works
When you resign, ask your human resources team or insurer for a portability or conversion form. Insurers usually allow you to shift to a similar policy with them, though underwriting andpremium adjustments may apply.
As per Irdai (Insurance Regulatory and Development Authority of India) rules, “Every individual member, including family members covered under an indemnity-based group health insurance policy shall be provided an option of migration at the time of exit from group or in the event of modification of the group policy (including the revision in the premium rates) or withdrawal of the group policy, to an individual health insurance policy or a family floater policy.”
“Remember, this will be the retailplan of the policy with the same insurer. The insurer may offer a policy that is closer to the original group policy, but not exactly the same,” said Shilpa Arora, co-founder and chief operating officer at Insurance Samadhan.
Although an insurer may accept a migration request even if the employee initiates the process close to their last day in the organization, it’s better to send the request as early as possible.
If you move to another company and migrate the policy from the previous employer to an individual plan, you get to keep both this policy and the new policy issued by the new employer. If the insurer at the new company is the same as at the previous employer, the cover will be treated as a separate policy.
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Benefits of migrating a company insurance cover
As mentioned earlier, you can continue with the same waiting-period credit for pre-existing diseases.
“Pre-existing illnesses are usually covered after three years of waiting period. If there is a switch from the original group policy, the waiting-period credit will continue,” Arora said.
“In other words, the counting of the waiting period will continue from the original policy issuance. This is especially beneficial for older parents who are insured under the group cover, and who might already be diagnosed with certain chronic illnesses,” she added.
For example, if a parent had disclosed thyroid as a pre-existing disease for a company policy whose tenure has crossed three years, the condition will continue to be covered under the migrated policy. They won’t have to wait another three years for their thyroid to be covered under a new policy.
Employees typically are not required to declare pre-existing diseases when a group policy is issued, but if they want their parents to be included, the insurer would ask for disclosure of their pre-existing diseases.
The other benefit of migrating a corporate insurance policy has to do with the moratorium periodfor pre-existing diseases. The counting of the 5-year moratorium period will continue from the original policy. After 5 years, the insurer cannot reject any claims due to non-disclosures, except in cases of fraud.
“If you want the cover to continue for self, spouse, and your children, the benefits and waiting-period credit can continue to the extent of the sum assured in the original policy. Ultimately, the final terms and conditions are at the discretion of the insurer,” said Nisha Sanghavi, a certified financial planner and director at Promore Fintech.
