IRDAI mandates continuous coverage during health insurance grace period

The Insurance Regulatory and Development Authority of India (IRDAI) has mandated that health and general insurance companies must provide coverage during the grace period if the health insurance premium is paid in instalments, whether monthly, quarterly, half-yearly, or annually. This new regulation ensures that policyholders will continue to receive insurance coverage during the grace period, which was not previously guaranteed. The grace period, ranging from 15 to 30 days depending on the payment frequency, allows policyholders extra time to pay their premiums without losing their coverage.

This change standardises the grace period practice across the insurance industry, addressing inconsistencies where some insurers offered coverage during the grace period while others did not. By ensuring continuous coverage, the IRDAI aims to enhance policyholder protection and financial security. S Prakash MS, MD & CEO of Galaxy Health and Allied Insurance Company Limited, praised the new guidelines as a significant shift towards more inclusive and accessible insurance, encouraging insurers to expand their product offerings across all age groups and medical conditions.Galaxy Health and Allied Insurance Company Limited

The IRDAI's mandate to provide coverage during the grace period for health insurance premiums is a progressive step towards enhancing the protection of policyholders. It ensures that individuals and families remain financially safeguarded against health-related expenses, even if they miss premium payment deadlines. This regulation not only reinforces trust between insurers and insured but also promotes a more inclusive and customer-friendly insurance industry. As the healthcare landscape continues to evolve, such measures are crucial in ensuring that health insurance remains a reliable and accessible safety net for all.