Health insurance new rule: Get full coverage during grace period despite unpaid premium, mandates IRDAI
coverage during the grace period if the premium of the health insurance is paid in instalments — monthly, quarterly, half-yearly, or annually. Policyholders of the insurance companies usually get a grace period to pay their health insurance premiums. The grace period for a health insurance plan is the extra time that you get to pay the premium if you have missed the policy renewal due date. Typically, most health insurance plans offer a grace period. What was the rule earlier? What is the new rule and how is it going to impact health insurance policyholders? Read here to find out
Earlier, the insurance companies used to offer grace periods based on the type of policy you bought, says Parthanil Ghosh, Director & Chief Business Officer, HDFC ERGO General Insurance. Some insurers offer a grace period of 15 days while others offer 30 days for health insurance policies. So, the grace period in a health insurance plan used to vary from one insurer to another. The insurance companies typically do not offer any policy coverage during the grace period in health insurance policies.
IRDAI’s big announcement on health insurance grace period: What has changed?
The Insurance Regulatory and Development Authority of India (IRDAI) aims to change this well-known practice of the insurance industry. In a master circular dated May 29, 2024, the regulator has standardised the grace period for health insurance policies with various installments and asked insurers to provide claim coverage even during the grace period. IRDAI said, «If the premium is paid in instalments during the policy period, coverage will be available for the grace period also.»
