Continuation of Cover (Portability in IPMI)
In international health insurance, continuation of cover refers to maintaining existing insurance protection without fresh underwriting – on a change of insurer by carrying over the previous terms (continued personal medical exclusions, CPME), on leaving a group scheme through a conversion right into an individual policy, and within the policy through a waiver of cancellation on grounds of age or claims history; market practice ties it to continuous prior cover, maximum ages and a comparable level of benefits.
Function
Health insurance cover loses value with every fresh underwriting, because conditions that have arisen in the meantime turn into new exclusions. Continuation of cover brings together the mechanisms that prevent this loss. First, carrying over the previous terms on a change of insurer: under continued personal medical exclusions the new insurer adopts exactly the exclusions of the previous contract – no more and no fewer – and waives a new moratorium. As market practice, AXA Global Healthcare requires twelve months of continuous prior cover, proof of the previous terms via the insurance certificate, a comparable level of benefits and an entry age under 80; switching from group schemes, including those on an MHD basis, is possible. Second, the conversion right (“group leaver” or “conversion”): with many insurers, someone leaving a corporate scheme can switch within a set period to an individual policy of the same insurer, with the terms that applied under the group contract being continued. Third, the renewal guarantee within the policy: many IPMI wordings guarantee annual renewal irrespective of age and claims history.
Limits
CPME is a discretionary decision of the accepting insurer, not a legal obligation, and must be requested before the old contract is cancelled. Maximum ages restrict switching, with older people frequently accepted only via FMU or out of a group scheme. The commitment relates to the exclusions, not to the premium, area of cover or benefit limits of the new product.
Practical Note
In tenders for group schemes, continuation of underwriting for the existing membership, the conversion right for leavers and the maximum renewal age are among the decisive comparison criteria. Insured persons should obtain a certificate of continuous cover before any switch.