If you are a health insurance policyholder, it is essential to understand that renewing your policy on time is crucial to maintaining continuous coverage. However, due to many reasons, it is quite possible to miss the premium due date. Just like life insurance policies, these plans also offer a certain grace period during which you are allowed to pay the premium (plus any applicable late fee). This gives you a second chance to keep the policy active without losing key benefits such as no claims bonus, as well as the waiting period.
What Is the Grace Period in Health Insurance?
Grace period meaning
A grace period is offered to the insurance company after the due date, allowing the policyholder to make the payment and keep the policy active. During this period, the policy is not cancelled or lapsed; however, a few restrictions may apply. For example, even though your policy is active and all your benefits (such as waiting period and no claim bonus) remain intact, you cannot claim during the grace period, unless the premium is paid.
Why insurers offer a grace period
Insurers provide a grace period to ensure policyholders don’t lose protection simply due to a delay in payment. It also reflects regulatory guidelines that promote fair treatment of customers, preventing sudden lapses in health coverage.
Why Does the Grace Period Matter?
Continuity of coverage
The grace period ensures that missing out on a premium does not affect the continuity of coverage. When you pay within the grace period, your access to medical coverage is uninterrupted. This helps avoid any gaps in protection that could leave you financially vulnerable in case of a health emergency.
Avoiding policy lapse
You can renew within the grace period, which is typically 15-30 days, depending on your policy. During this period, your policy remains valid, and after payment, you do not need to undergo fresh underwriting or health checks, which are typically associated with new policies.
Maintaining a no-claim bonus (NCB)
If you have accumulated benefits, such as NCB, that help increase your sum insured over the years, paying after the due date during the grace period will not reset these benefits.
How Long Is the Grace Period in Health Insurance?
Typical duration (15 to 30 days)
Most insurers, including ManipalCigna, provide a grace period of 15 to 30 days, depending on the policy terms. This provides policyholders with a fair opportunity to complete their renewal.
IRDAI guidelines on grace period
The IRDAI has mandated that all health insurance providers offer a grace period to customers, ensuring that there are no penalties for minor or inadvertent delays in paying premiums.
Difference between grace period & waiting period
These two are different concepts. While the grace period relates to premium payments and renewal timelines, the waiting period applies to claims for specific treatments after buying or upgrading a policy. Confusing the two could affect your understanding of claim eligibility.
Impact of Grace Period on Your Health Insurance
Premium payment rules
You should ensure that the entire premium is paid during the grace period; any partial payment will not be accepted. Failure to pay within the grace period can result in the lapse of the policy and coverage. Your accumulated benefits will also be lost.
Claim settlement restrictions during the grace period
Claims raised during the grace period are generally not admissible until the premium is paid. This means your coverage is effectively inactive until you clear dues.
Effect on policy renewal benefits
Renewing within the grace period preserves cumulative benefits like waiting period credits and NCB. Missing it could force you to start over as if buying a fresh policy.
What Happens if You Miss the Grace Period?
Policy lapse explained
When you fail to pay the premium even during the grace period, your policy will lapse after the end of such stipulated period. You will lose coverage and all the accumulated benefits.
Consequences of re-purchasing a new policy
You might need to undergo medical tests, the premiums can be higher, and you might be denied coverage of pre-existing conditions.
Loss of accumulated benefits
You forfeit years of accumulated waiting period credits and NCB, making your new policy less advantageous.
Grace Period vs. Free Look Period
Definition of free look period
The free look period is the 15 days offered to a policyholder to review the terms and conditions of the policy. The policyholder can request cancellation of the policy if they are unsatisfied with the terms.
How does it differ from a grace period?
Grace period is associated with renewals, whereas the free look period is applicable only for new policyholders at the start of a new policy.
How to Renew Health Insurance During the Grace Period?
Online premium payment process
You can conveniently pay premiums online through the insurer’s website, net banking, UPI, or mobile wallets during the grace period.
Offline renewal options
If you prefer traditional methods, you may visit the insurer’s branch office or pay via authorised agents to complete your renewal.
ManipalCigna’s simplified renewal process
ManipalCigna Health Insurance offers a hassle-free renewal system, with multiple digital channels and dedicated customer support, ensuring policyholders can quickly regularise their coverage.
ManipalCigna Health Insurance and Grace Period Benefits
Flexible renewal reminders
ManipalCigna sends timely reminders via SMS, email, and phone calls to ensure you don’t miss the due date or grace period.
Easy digital payment options
Policyholders can renew seamlessly using ManipalCigna’s secure payment gateway, customer portal, or mobile app.
Support to avoid policy discontinuity
Dedicated support ensures you never lose coverage due to procedural delays, with customer care guiding you through the renewal process.
Tips to Avoid Missing Renewal Dates
- Set up auto-debit/reminders: Enable auto-debit or set up calendar reminders so premiums are paid on time.
- Keep track of the policy expiry date: Mark the expiry date on your calendar or digital planner to stay alert as the due date approaches.
- Use ManipalCigna’s customer app/portal: ManipalCigna’s digital platforms enable you to easily check renewal dates, pay premiums, and manage your policies.
Conclusion
A grace period is a critical safeguard offered by insurance companies, ensuring that coverage remains uninterrupted and a policyholder is not penalised for minor delays. It should be used as a backup option, not as part of your financial management. You should remember that timely renewal is crucial for maintaining continuous coverage, retaining accumulated benefits, and overall peace of mind.
With its simple renewal process and digital tools, ManipalCigna makes managing health insurance easier and more reliable.
FAQs
What is the grace period for health insurance renewal in India?
In India, insurers usually allow a grace period of 15 to 30 days after the premium due date to renew a health insurance policy without losing accumulated benefits.
Can I file a claim during the grace period?
No. Claims are not payable until the premium is cleared. Coverage resumes only after renewal is completed within the grace period.
What happens if I don’t renew within the grace period?
The policy lapses, and you lose coverage, no-claim bonus, and waiting period credits. Buying a new policy may also require medical checks and higher premiums.
How does ManipalCigna remind policyholders about the grace period?
ManipalCigna sends timely reminders via SMS, email, calls, and app notifications, ensuring policyholders don’t miss renewal deadlines.
