Short answer
Life and health premiums have a grace period of 15 days on monthly mode and 30 days on quarterly, half-yearly and annual modes. Motor and other general policies have none in the IRDAI circulars read for this guide, so treat the expiry date as the last day.
The rule, line by line
| Line | Monthly | Other modes | During grace |
|---|---|---|---|
| Life | 15 days | 30 days | The policy stays in force and risk cover goes on (clause 8). |
| Health | 15 days | 30 days | Cover goes on when the premium is paid in instalments (item 9). Renewing in grace keeps sum insured, NCB, waiting-period and moratorium credits (item 8). |
| Motor and other general | None set | None set | An expired motor policy leaves the vehicle uninsured from the day after expiry. |
How to count it
Add the days to the due date. If the premium is still unpaid after the last day of grace, Bima Diary shows the policy as lapsed from the next day.
| Mode | Due | Grace ends | Lapses if unpaid on |
|---|---|---|---|
| Monthly | 15-03-2026 | 30-03-2026 | 31-03-2026 |
| Quarterly | 15-03-2026 | 14-04-2026 | 15-04-2026 |
Be careful with annual health renewals
The health circular says cover is available during grace "if the premium is paid in instalments". For a yearly renewal, it protects the credits, but it does not say a claim during the gap is covered. Read the policy wording before you tell a client they are covered during grace.
After grace ends
A lapsed life policy can often be revived, and the plan decides the terms. For LIC non-linked plans, a secondary source reports revival within 5 years of the first unpaid premium. For unit-linked policies, the life circular gives 3 years. The general period for other non-linked plans could not be confirmed, and pages online disagree, so check the plan's own terms.
For motor, there is no period of cover after expiry. The 90 days you may have heard about is the time limit for keeping your no claim bonus, not extra cover. See NCB and the 90-day rule. IRDAI's motor page mentions no grace period and advises going to the insurer at least 15 days before expiry.
Common questions
Is a life policy in force during the grace period?
Yes. The IRDAI life circular says the policy is considered in force during grace, and risk cover goes on as per the policy terms (clause 8).
Does motor insurance have a grace period?
None is set in the IRDAI circulars read for this guide, and IRDAI's motor page mentions none. Treat the expiry date as the last day.
Does renewing a health policy in grace keep waiting-period credit?
Yes. Item 8 of the health circular says sum insured, NCB, waiting periods and moratorium credits are protected when the policy is renewed during grace.
What is the grace period for a half-yearly premium?
30 days. Only monthly mode has the shorter 15 days.
Sources
- IRDAI Master Circular on Life Insurance Products, 12-06-2024, Ref IRDAI/ACTL/MSTCIR/MISC/89/6/2024 The IRDAI text, read from a copy on taxguru.in, not from irdai.gov.in. Opened again on 08-11-2026.
- IRDAI Master Circular on Health Insurance Business, 29-05-2024 The IRDAI text, read from a copy marked "Version 1", not from irdai.gov.in. A later revision was not checked. Opened again on 08-11-2026.
- Business Today on the revised grace-period rules for health insurance, 31-05-2024 Press report.
- IRDAI consumer page on motor insurance Official. Opened again on 08-11-2026.
- Groww on renewing a life insurance policy Secondary source for the 5-year LIC revival window. Plan terms decide.
Last checked 08-11-2026. General information for agents, not legal, tax or financial advice. Rules change: the insurer's documents and the regulator's current text decide.
