5 things you must know about renewing health insurance

Health plans are typically offered as one year contracts and require a renewal every year. Some insurers may send a renewal notice informing the insured about the expiry of the policy. However, it is the responsibility of the insured to renew the policy. This is to ensure you don’t lose the added benefits that usually come from policy continuation— waiting period for coverage of preexisting disease, accumulation of no-claim bonus, among others. The policy will lapse if not renewed in time, and the insured will not be eligible for any continuity benefits.
Renewal request

The insured must approach the insurer and make a request for health insurance renewal, citing the policy number, at least 30 days before the policy is due to expire.

Health update

Any change in health condition should be communicated to the insured at the time of the renewal of the policy.

Premium payments

The insurance company will inform the applicant about the premium payable. The same must be paid for the renewal to take effect. The insurer will provide a receipt for the premium.

Grace period
If the policy is not renewed in time, the insurer may allow a grace period of 15 days for payment of the renewal premium, and the insured will be eligible for continuity benefits.

Portability

The customer may choose to change the insurance provider or the plan, at the time of renewal. The same must be communicated to the existing insurer at least 45 days before expiry.
Points to note

1. The insurance company will not entertain claims for the period between expiry and renewal. The policy will lapse if the premium is not paid within the grace period.

2. The insurer may choose to deny renewal. The customer must seek explanation for such action.
3. In case the insured opts for portability, regulation provides that he/she would be eligible for continuation benefits from the existing policy.

The content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.