IRDAI tweaks grace period rules for health insurance. Check revised guidelines for policyholders

The Insurance Regulatory and Development Authority of India (IRDAI) has released a new master circular to simplify and enhance health insurance for policyholders. One of the points mentioned in the circular states that health and general insurance companies are required to offer coverage during the grace period if health insurance premiums are paid in installments, whether monthly, quarterly, half-yearly, or annually.

Policyholders usually get a grace period for paying health insurance premiums, which is some extra time past the renewal due date. This period is vital, providing them with additional time to pay premiums and maintain their insurance coverage.

Policyholders have the opportunity to pay your health insurance premium within a grace period if you face unexpected difficulties. The grace period typically ranges from 15 to 30 days, depending on the insurance provider and policy type. Not all companies offer this benefit, so check your policy details.

IRDAI has now set a grace period for premium payments, which is 15 days for monthly premiums and 30 days for quarterly premiums. In a master circular dated May 29, the insurance regulator 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."

Further, IRDAI stated that the grace period will be for 15 days where the premium is paid through monthly installments. Those who pay health insurance premiums in quarterly, half-yearly or annual installments are eligible to get a grace period of 30 days.

The new IRDAI regulations aim to standardise this practice across the industry.

Before this, it was not mandatory for insurance companies to offer health insurance coverage during the grace periods. In the grace period, your health insurance stays active with benefits like sum insured, no claim bonus, waiting periods, and moratorium period for pre-existing diseases, ensuring policy continuity.