Does the Revised Moratorium Period Apply to Existing Policies?

The revised moratorium period, as presented by the Insurance Regulatory and Development Authority, applies to all health insurance policies. This remains in accordance with the regulator's updated framework. The moratorium period, which has been reduced from eight years to five years, limits an insurer's ability to contest a policy after it has remained continuously in force.

However, the applicability of the revised provisions to existing policies relies on the insurer’s implementation of the updated regulatory guidelines and the continuity of the policy.

Why was the Moratorium Period Introduced?

It is mandatory for all insurance providers present in India to abide by this. Here are some reasons that highlight its importance.

• Protection for Policyholders: This provision is designed to prevent policyholders from receiving coverage after a certain period of coverage. It can assure you of transparency and build long-term trust by offering customers greater confidence while filing claims. Once the moratorium period comes to an end, the insurer’s need to reject claims is restricted in terms of technical grounds and historical records. This offers a fair and seamless claim experience for you.


• Safeguarding Insurers: The moratorium period was also initiated for individuals who just buy an insurance policy after they are diagnosed with pre-existing conditions. This further leads to higher premiums. It also upgrades early policy purchase while helping you handle risks more efficiently. This also ensures premiums remain fair and affordable.

Why Was the Moratorium Period Reduced?

Such a revision was introduced to strengthen policyholder protection and to encourage transparency in the health insurance sector. A shorter moratorium period lessens the duration that might put you in uncertainty. It also aligns with broader regulatory efforts to encourage consumer confidence in health insurance.

Conditions that are Included after the Moratorium Period

Here are the things that explain claims for pre-existing conditions after the completion of a moratorium period.

• Protection also applies to related or similar illnesses. However, there should not be any intentional misinterpretation.


• Claims for previously undisclosed pre-existing conditions can’t be denied completely for non-disclosure unless and until fraud is properly proven.


• Waiting period conditions for specific illnesses are served individually.


• Fraud or permanently excluded conditions might still lead to claim denial.

What are some impacts of increasing the sum insured on Moratorium?

Once the moratorium period in health insurance is completed, insurance claims cannot be rejected. However, the type of policy, renewal without gaps, and an increase in the sum insured might influence the moratorium period.

If you increase the sum insured, the moratorium period for the newly added sum might start from the beginning. This means that while the original sum insured remains within the completed moratorium period, the new amount is calculated from the date of the enhancement.

So, the revised moratorium period is a major policyholder-friendly change that lessens the duration after which insurers face restrictions on contesting health insurance policies.