A worked example
A quarterly policy with a date of commencement of 31-01-2020 and a premium paying term of 15 years, as of 08-11-2026: the next premium is due on 31-01-2027.
| Item | Amount |
|---|---|
| Next premium due | 31-01-2027 |
| Grace period ends | 02-03-2027 |
| Lapses if still unpaid on | 03-03-2027 |
| Last premium due | 31-10-2034 |
| Premiums left, with the next one | 32 |
The assumptions in that example
- The first premium is paid on the date of commencement; each next one falls one quarter later.
- Grace period: 15 days for monthly mode, 30 days for the others. Life cover goes on during grace. Health cover goes on during grace only when the premium is paid in instalments; renewing a health policy within grace keeps its credits.
- Unpaid by the end of grace, the policy lapses the next day. A lapsed policy can often be revived; the terms depend on the plan.
- For life and health policies. Motor and general policies have no grace period.
Estimate only, not advice.
How it is worked out
Dates are counted from the date of commencement each time, so a date of the 31st stays the 31st wherever a month has one. The grace periods are in the IRDAI master circulars below. For motor and general policies there is no grace period to count: see grace periods.
Common questions
How is the next premium due date worked out?
The date of commencement plus whole modes: 12 months for annual, 6 for half-yearly, 3 for quarterly, 1 for monthly.
When does a policy lapse?
The day after grace ends, if the premium is still unpaid. A lapsed policy can often be revived; the plan's terms decide.
Does this work for motor policies?
No. Motor and general policies have no grace period in the circulars read. It is for life and health.
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.
