Thursday, April 23, 2026
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Bombay HC – Duty of Diligence on Insurer in Policy Portability

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The Star Health Insurer had honoured the claims of Haresh K. Joinsar. 

Thereafter, the application for porting the policy was made in January 2022 and it was migrated.   The coverage started from 13.1.2022 to 12.1.2023.

However, the hospitalization claim of the wife of the insured as per the ported policy was repudiated on 25.4.2022 for non-disclosure of carcinoma.

The Insurance Ombudsman held that the onus of ascertaining the entire claim history prior to porting a policy would be on the insurance company.   Therefore, the petitioner, having been the issuer of the ported insurance policy, would be deemed to have full notice of the entire medical history and claim history of the insured, before taking a decision on porting the insurance policy and agreeing to continue providing such insurance cover. The Learned Ombudsman has taken the view that the onus of ascertaining the entire claim history when porting a policy would lie on the insurance company.

Rule 17 of the IRDA (Health Insurance) Regulations – Migration of health insurance policy read with Paragraph 1 of Schedule 1 show that the new incoming Insurer has advance period of 60 days to assess the insurance claim history before portability.

Paragraph 11 shows that if the existing insurer fails to provide such requisite data, it is liable to the penal intervention under the Insurance Act, 1938.  If the information is not given, there is no obligation of new insurer to accept the porting request.

considering the intensity of the promise that insurance companies hold to society, it is must be legitimately and reasonably expected that insurers would exercise the highest degree of professionalism and back to back, diligence in vetting the policy particulars and claim history of an applicant for porting, before accepting or rejecting a request for porting of the policy.

Judgment dated 23.1.2026 of the High Court of Bomba in Writ Petition No.9028 of 2024 of Care Health Insurance Ltd.   Vs.  Manjula Haresh Joisar and another

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