under your Health Insurance Policy
if you fail
to pay the renewal Premium
on time. For most health policies, you are
required to renew your policy at least 8 days prior to the expiry date
but no more than 30 days prior to expiry. Say if your policy is expiring
on 31st March, you will need to renew the policy latest by 23rd March
and earliest by 2nd March.
If for some reasons you fail to renew
as desired on time, you can still revive your health policy as
insurance companies allow a Grace Period
of 7 days (including working
and non-working days) after the expiry of your policy. After 7 days have
passed once your policy expires and you haven’t paid your renewal
premium your policy is considered lapsed and there is no way out for
policy revival. A few insurance companies are more lenient and extend
the grace period up to 15 days.
The consequences of a lapse
policy are severe and it may prove to be a grave mistake. If your policy
coverage lapses because of non-payment of insurance premium timely, you
will need to buy a new Mediclaim
policy as if you are buying it afresh.
If you had earned a no-claim Bonus
on your previous health policy, you
will not be eligible to earn the benefit on your new healthcare policy.
losing the no-claim bonus there are host of other disadvantages. Health
cover policies have a Waiting Period
of 2 to 4 years before they
provide insurance cover for certain illness and surgery. In case of a
policy lapse, for the new policy that you purchase the waiting period
will not be adjusted for the waiting period that has already been
consummated since you first brought your healthcare policy. Thus it is
huge penalty that you pay for not paying your renewal timely.
avoid such a situation it is advised that you keep adequate reminders so
that you do not miss the due date. Besides having a reminder you may
even choose to do an automatic ECS so that the premium amount towards
your due policy is deducted from your bank account on the due date.
Insurance companies do send timely reminder in order to ensure that
customers do not miss the renewal date, but despite this a significant
percentage of health insurance policy
lapsing every year. If you miss the expiry date you still have a
grace period within which if you pay the due insurance premium you
remain eligible for all the renewal benefits.