Health insurance policy holders can switch companies from July 1 this year. Previously they have fear of losing benefits of a `no claim' record or apprehensions that they may have to wait before certain health conditions are covered.

It is proposed by the insurance regulator (IRDA) that insurers must allow policyholders to transfer the credit in terms of waiting period for pre-existing illness and bonus sum insured from one insurer to another.

From July 1, 2011, all life and general insurance companies will follow the guidelines issued by the Insurance Regulatory and Development Authority on Thursday. The guidelines were based on portability of health insurance.

This portability is similar to what is offered by mobile phone operators.

Although IRDA has not mentioned the amount of premium to, be paid by policyholders on changing the insurer. One of the biggest difficulties of portability, faced by the medical policyholders would be watching the exclusion period for pre-existing diseases and conditions that act as a disincentive in dumping an insurer and taking another policy afresh.

This scheme will provide full credit for the period of cover as well as the no-claim bonus with the previous insurer.