Page 194 - IC38 GENERAL INSURANCE

IRDAI has built into its regulations a consumer-friendly provision that takes care
this problem. The customer can return it and get a refund subject to the
following conditions:

1. This applies only to life insurance policies and to health insurance
policies with tenure of at least one year.

2. The customer must exercise this right within 15 days of receiving the
policy document

3. He has to communicate the same to the insurer in writing
4. The premium refund will be available only if no claim has been made on

the policy and will be adjusted for
a) proportionate risk premium for the period on cover
b) expenses incurred by the insurer on medical examination and
c) stamp duty charges

20. Grace period for renewal

A significant feature of a health insurance policy is maintaining continuity of
insurance. As benefits under a policy are maintained only if policies are
renewed without break, timely renewal is of great importance.

As per IRDAI guidelines, a 30 days grace period is allowed for renewal of
individual health policies.

All continuity benefits are maintained if the policy is renewed within 30 days
from expiry of the earlier insurance. Claims, if any, during the break period will
not be considered.

Insurers may consider granting a longer grace period for renewal, depending on
individual products.

Most of above key clauses, definitions, exclusions have been standardized under
Health Regulations and Health Insurance Standardization guidelines issued by
IRDA. Students are advised to go through the same and also keep themselves
updated on guidelines and circulars issued by IRDA from time to time.

Test Yourself 10

As per IRDA guidelines, a ________ grace period is allowed for renewal of
individual health policies.

I. Fifteen days
II. Thirty days
III. Forty Five days
IV. Sixty days

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