Bharti AXA INSURANCE GLOSSARY Grace Period Once the premium on an insurance policy becomes due, the policy does not lapse immediately. Instead, the insurer gives some time to the policyholder to make the payment, during this period the insurance policy remains active. This period is known as the grace period. If the premium due is not paid by the end of the grace period, the policy will lapse and the coverage cease. IRDAI has set the minimum grace period that insurers have to offer at 15 days. Some insurers may offer a grace period of up to 30 days as well. From time to time, IRDAI may ask the grace period to be extended based on extraordinary circumstances. For example, it may instruct insurers to extend the grace period to 60 days for a limited time for policyholders residing in a flood-hit area. IRDAI states that it is the duty of the policyholder to make the payment within the grace period provided, regardless of a renewal notice from the insurer. The renewal notice is only a courtesy extended by an insurer. In case one has bought the policy through an agent or broker, one must not wait for them to pick the cheque/ payment. The policyholder must make arrangements to pay the renewal amount directly to the insurer. Request Call Back Category * - Select -CarTwo WheelerHealthTravelPersonal Accident Buy Renew Claim submit Related Posts Disclaimer : The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Travel needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.