Health insurance grace period rule change: Check IRDAI guidelines

New Delhi: The health insurance grace period rule was recently changed by insurance regulator IRDAI. It has made a paradigm shift in rules and regulations pertaining to the grace period of health insurance policies by increasing the period before the policy lapses owing to non-payment of premium.

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What is insurance grace period?

If a policyholder forgets to pay their health insurance policy premium and the policy has expired, then, the insurance company gives them a grace period to pay the premium. The grace period is the extra time provided to policyholders to prevent their policy from lapsing.

Health insurance grace period of 30 days

If the policyholder pays the health insurance policy a premium on a monthly basis, then, the insurance company will have to provide a grace period of 15 days.
If the policyholder pays a quarterly, semi-annual, or annual premium, then a grace period of 30 days must be provided, according to IRDAI master circular.
It must be noted that IDRAI has provided the guidelines for the minimum health insurance policy grace period and insurers are free to provide a longer grace period for premium payment.

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Will health insurance cover remain during grace period?

Insurance regulator IRDAI has directed insurers to provide risk coverage to health insurance policyholders even during the grace period. To be sure, this applies to cases wherein the policyholder pays their premium in instalments. The risk coverage applies to all major health problems barring some exceptions which have been listed under exclusions.

 Health insurance rule change: Insurance regulator IRDAI has released a master circular in which it has given new guidelines for grace period before a health insurance policy lapses.  Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today