User Activity Modal/Pop Up Component

What is Health Insurance Renewal and Its Importance for Insured Individuals

Simple Guide to Health Insurance Renewal in India

100 Views 83 Shares

Written by

Updated :

Reviewed by

Rated by users

Health insurance is a type of insurance policy that covers all the medical expenses arising from medical treatments, surgery, hospitalization, etc. The policyholder pays a premium amount to the insurance company, and the insurer, in return, pays for the insured's medical expenses. A health insurance policy is usually valid one year after which, it has to be renewed by the policyholder. However, some insurance companies provide the option of extending health insurance benefits for a longer period by paying a higher health insurance renewal premium about.

In the below sections we will discuss key aspect of renewing health insurance in a timely manner including its importance, benefits, how the renewal process works, impact of delaying health insurance renewal and more. 

Importance of Renewing Health Insurance Policy

Timely health insurance renewal means renewing your policy before the due date to enjoy continuous health insurance coverage. If someone fails to renew their health insurance policy on time, the insurance company will provide a grace period of 15 days for the payment of the insurance premium.  

Health insurance renewal is important for insured individuals for the following reasons:

  • If any policyholder fails to renew the health plan, all benefits of the health insurance plan will be lost.
  •  If the policy is not renewed and the premium amount is not paid on time, then the policy becomes inactive. This clearly means any claim made after expiry of the policy would be rejected.
  • Not renewing your existing policy means that you will have to purchase a new policy which may be more expensive or not provide you with all the mediclaim policy benefits you had access to earlier.


Benefits of Renewing Health Insurance on Time

The following are the key benefits of renewal of health insurance plan on time or before the expiry of the policy.

Continuous Coverage:

 If you renew the policy on time, you and your family can enjoy continuous coverage of the health policy. This will ensure that your and your family’s financial interest are protected even if one or more family members have to undergo expensive medical treatment or hospitalization.  

Tax Benefit

The policyholder who pays renewal premium for health insurance is eligible for saving tax under Section 80D of the Income Tax Act. This tax benefit for medical insurance can be as high as Rs. 1 lakh annually for a senior citizen insured person who is also paying the premium for his/her senior citizen parents.   

Avoid Higher Rates of Premium

Mediclaim policy renewal when made on time ensures that your existing health plan is renewed with the same benefits and the same premium amount. This is not the case if you let your existing plan lapse and buy a new health insurance policy.

How to Renew Your Health Insurance Plan? 

There are two modes to renew health insurance policies: offline or online.


Offline renewals can be done by visting the office of an inurance agents or by visiting the representative office of your insurer in person. Currently, offline payments for renewal of health insurance can be done by cheque, draft, credit/debit card or UPI payments. Very few insurance companies and brokers at present accept   


Health insurance renewal online can be done through various insurer aggregator portals as well as through the website of the health insurance provider. Alternately, you can set up a standing instruction with your bank for auto debit of your health insurance premium to minize last minute hassles.

Many insurers send renewal reminders usually 30 days before expiry of the plan or 30 days before the renewal premium due date. But it is the responsibility of the insured to renew the plan in a timely manner. 


Consequenses of Missing Health Insurance Renewal Payment

Loss of No Claim Bonus

You get a 'No Claim Bonus' when you don't file a claim in the previous year and this increases the sum assured of your health plan. To avail this benefit, you must renew the health insurance policy on time.

Loss of Coverage

Non-renewal of health insurance plans leads to loss of continued coverage. Hence you cannot enjoy uninterrupted services of your mediclaim plan.

Lifelong Renewability

If you are a senior citizen and your policy expires, you may not be able to enjoy the perks of the policy. If the policy is not renewed within the grace period, you may also not find an adequate health insurance policy for your requirement or end up paying a significantly higher health insurance premium.

Documents Required for the Health Insurance Policy Renewal

If the policyholder wants to continue the policy with the current insurer, they do not need to submit any additional health insurance documents. For offline renewal, the policy holder may be required to submit a copy of the current insurance cover letter/renewal quote along with the cheque, bank draft for the amount payable. This is not necessary when making online payment of mediclaim renewal premium or if one has opted for auto-debit through standing instruction submitted with the bank. 

Things to Remember when you Renew Health Insurance Policy

Before going ahead with health insurance renewal, you must follow and check the following steps:

Due Date 

Before renewing the health policy, you must check the due date of renewal of your policy. Always try to renew your policy within the due date. If you miss the due date, the insurance company will give you a grace period of 15-30 days to complete the premium payment. Renewal within the grace period ensures that you retain the benefits of the existing policy.

Cumulative Bonus 

The cumulative bonus or no claim bonus refers to an additional insurance cover given when there is no claim made against the health insurance policy in the previous year. This bonus can be used throughout the period of the policy. Always look for a policy that comes with a cumulative bonus to increase your health insurance cover over time at no additional cost.

Sum Insured Increase

On each renewal, you must ensure that the sum assured of your health insurance policy is sufficient to meet your present and future medical expenses. Increase your sum insured in case there are more members under the same coverage. This facility can be availed only if your current health insurance plan is valid and has been renewed in a timely manner.  

Addition or Deletion of a Family Member

If you have a newborn baby or dependent parents and want to cover them, you can do so at the time of mediclaim renewals. Deletion of family members from the coverage can be done at the same time.


The last but not the least point to check at the time of mediclaim renewal is the feature of portability. This feature allows you to change your health policy whenever you want to. You can easily port your policy accordingly if you find a better plan. 



1. Why is mediclaim policy renewal important?

If the policyholder fails to renew a health insurance or mediclaim policy, they will lose the benefits.

2. What is the purpose of the health insurance renewal notice?

The renewal notice is an official document that informs you about your policy maturity.

3. Is renewing health insurance compulsory by law in India?

No, there is no obligation to buy or renew health insurance in India. However, it is advisable for you to always secure yourself with a good health insurance plan as these plans offer a financial cushion during medical emergencies.

4. Is age an important factor for an increase in premium during health insurance renewal?

Age undoubtedly plays a vital role in determining your insurance premium. But the existing health insurance policy premium will not increase unless you have made changes to the current plan like increasing the sum assured, addition of new members, opting for additional insurance riders to current plan, etc.

5. Can my health insurance plan get renewed on its own?

A health insurance plan cannot get renewed on its own. You will have to follow the renewal process. If you miss the expiry date and cannot renew the policy on time, you can use the grace period provided by the insurer to renew the plan by paying a certain fine.


ARN No: Nov22/Bg/29A

Calculate Term Insurance Premium
User Activity Modal/Pop Up Component
User Activity Modal/Pop Up Component