Switching OSHC insurer mid-visa: waiting period credits and getting your premium refund

Students switch OSHC insurers for ordinary reasons all the time — a better rate, a friend who had a good experience, a move to a different state, a course extension. The two things people worry about are always the same: will I lose cover during the switch, and will I have to serve my waiting period all over again? The OSHC Deed commencing 1 July 2025 answers both, in writing.

The answer to both worries

Gap: Cover must be continuous. The visa condition on health insurance (condition 8501) requires adequate cover for the whole of your stay, and the Department of Home Affairs expects it to be uninterrupted. The safe pattern is to start the new policy on the same day the old one ends, or to start it before the old one ends.

Waiting period: You do not start from zero. Schedule 4 of the Deed says:

“For clarity, a waiting period served under a previous OSHC Product will be off set against, or credited towards, the waiting period of a new OSHC Product, provided there is continuous cover.”

That word continuous is doing the work. Serve a waiting period on one policy, switch without a gap, and the new insurer credits what you have already served.

What you can be refunded for

Schedule 5 of the Deed sets out the events that trigger a refund and how much comes back in each case. The full list, in the Dee’s own framing:

Event	Refundable amount
(a) Failed to arrive in Australia to take up studies and will not come at all	Paid premium refunded in full, less a reasonable processing fee (if any)
(b) Failed to arrive because of a delay, but eventually arrives	Refunded pro rata for the period of delay from the Student Visa date to the actual arrival date, less a processing fee
(c) Paid on the basis a Student Visa would be granted, but refused entry	Refunded in full, less a processing fee
(d) Paid for an extended stay that Home Affairs then refused	The extension premium refunded in full, less a processing fee
(e) Forced to leave Australia before the visa expires, for reasons beyond your control	Refunded pro rata for the absence period, less a processing fee
(f) Granted permanent residence, or an Australian visa other than a Student Visa	Refunded pro rata for the remaining visa period, less a processing fee
(g) Can prove they were not residing in Australia for a continuous period of 3 months or more	Refunded pro rata for the absence period, less a processing fee
(h) Can prove OSHC was taken out and paid for with another insurer covering the same period	Refunded pro rata for the overlapped period, less a processing fee
(i) Administrative changes adjust the OSHC period beyond what the Student Visa requires	Refunded pro rata for the affected period, less a processing fee

The Deed adds that where the Overseas Student has Dependants, the refundable amount also includes the paid premiums for those dependants.

Two entries are worth reading twice. Row (h) is the one that matters if you accidentally buy overlapping cover — you are entitled to the pro-rata value of the overlap, not a full refund. And row (g) is a genuinely useful provision: if you were outside Australia for three continuous months or more on a valid Student Visa, the insurer must refund the pro-rata absence period, provided you can prove it. The Ombudsman’s waiting period guidance and the Department of Home Affairs’ adequate health insurance page both sit alongside this in practice.

A note on the processing fee

Every refund in Schedule 5 is stated “less a reasonable processing fee (if any)”. The Deed permits a reasonable fee; it does not permit an insurer to withhold the refund. If an insurer quotes you a refund as zero, ask what the processing fee is and on what basis.

How to switch without a gap

1. Keep the old policy running until the exact day the new one starts. Overlap is safer than a gap, and the overlap is refundable under row (h).
2. Get the new policy’s waiting period position in writing, so you can see the credit applied to what you have already served.
3. Tell the old insurer the cancellation date and ask for the refund calculation against Schedule 5 in writing.
4. Check the overlap was refunded if you had one.

Then compare and buy

Once you know what a switch costs you, the comparison itself is short. Because every approved insurer signs the same Deed, the statutory minimum is identical, and what differs is private hospital agreements, network, extras and price. See the insurers side by side on our comparison page, and get a live quote for your exact dates on our quote page.

The insurers currently selling OSHC that you can price and buy through our checkout are Allianz Care Australia, Bupa Australia, Medibank and ahm. nib also sells OSHC, and we compare it, but we do not offer it for purchase.

Key takeaways

• Waiting periods you have already served are credited when you switch, provided cover is continuous.
• Schedule 5 defines nine refund events, including refunds for non-arrival, refused entry, forced departure, permanent residence, and proven absence from Australia of three continuous months or more.
• A processing fee is permitted; a nil refund is not. Ask for the calculation.
• Overlap is safer than a gap — and an accidental overlap is refundable pro rata.
• Once you know the switching cost, compare the insurers that are actually selling OSHC today.

Sources

• OSHC Deed commencing 1 July 2025 (PDF) — Schedule 4 (waiting period credits) and Schedule 5 (premium refunds).
• Department of Home Affairs — Adequate health insurance for visa holders
• Private Health Insurance Ombudsman — Overseas Student Health Cover
• Private Health Insurance Ombudsman — Waiting periods

Information is current as at 1 October 2026. This is general information, not personal advice, and it does not consider your personal circumstances. CompareOSHC is not an insurer or underwriter. We may receive a commission from insurers; commissions do not influence our comparisons.