Grace Period Provision (Health)
Coverage continues during the grace period for overdue premium - typically 7 days for weekly modes and 31 days for other modes - and claims during the period are paid less the overdue premium.
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A health policy includes a grace period provision. If a premium is not paid by the due date, the grace period:
Keeps the policy in force for a stated number of days after the due date; if a covered loss occurs during that time, the unpaid premium is deducted from the claim payment — The grace period is the window after the premium due date during which the policy remains in force and the premium may still be paid. Coverage continues through the grace period as a matter of contract: if the insured suffers a covered loss during that window, the insurer pays the claim but deducts the overdue premium from the benefit. If the premium remains unpaid when the grace period ends, the policy lapses. The provision balances consumer protection with the insurer's need for timely premium.
National insurance concept
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