Around 15% of customers porting their health insurance policies are transitioning from bank-based plans to retail individual policies, according to Policybazaar report. This change comes in the wake of new guidelines from the Insurance Regulatory and Development Authority of India (IRDAI) that facilitate migration from group to retail health insurance.

Historically, many customers were enrolled in health insurance policies through their banks’ partnerships with insurance companies.

However, when these partnerships end, customers often face gaps in coverage, leaving them unprotected.

The recent IRDAI announcement has empowered customers to switch to retail individual policies, which offer these benefits (as per Policybazaar):

Lifetime renewability: Retail plans ensure continuous coverage for as long as the policyholder desires.

Broader coverage: These policies typically have fewer sub-limits, covering a wider range of medical expenses.

Customisation: Retail policies allow for tailored coverage, including add-ons like consumables, OPD, and PED reduction.

Siddharth Singhal, Head of Health Insurance at Policybazaar.com, said “It’s encouraging to see that customers are increasingly aware of the benefits of comprehensive coverage. Unlike bank-based plans, retail policies ensure continuous protection even if a bank’s partnership with an insurer ends. Retail policies offer customization and fewer limitations on coverage, along with the crucial benefit of lifetime renewability.”