What Is Automatic Reinstatement in Health Insurance?

Health insurance provides a level of protection against an unexpected medical bill. However, sometimes people forget to pay their premiums on time or postpone the payment of premiums due to financial problems. This can cause the health insurance coverage to become inactive.

Insurers are able to provide a feature known as reinstatement, which can be beneficial to help policyholders restore their cover. The easiest way to do this is automatic reinstatement.

If you need health insurance coverage the most, and you don't want to lose out on it, knowing what automatic reinstatement is and how it works can help you make sure you keep your benefits.

What Is Reinstatement in Health Insurance?

When a health insurance policy is cancelled due to the failure to pay premiums on time, the policy can be restored to its former state by the process of reinstatement. If the policy lapses, the insurance company will end coverage for the plan. This may not allow you to access a hospitalisation benefit, cashless treatment or any other benefit under the policy. Reinstatement will reactivate the policy and resume coverage.

In most situations, there will be a reinstatement fee due, and there are some formalities to be completed before reinstatement will be granted. The exact method depends on the insurance companies and the duration of the lapse.

What Is Automatic Reinstatement?

Automatic reinstatement of a health insurance policy when the premiums are paid within the grace period. A grace period is the extra time given after the premium due date to make the payment without losing policy benefits. For most health insurance plans, the grace period ranges between 15 and 30 days, depending on the insurer.

In automatic reinstatement, the insurance may not ask for extra documentation, medical exams or a separate reinstatement request. The policy is automatically restored when the pending premium is paid. Usually, this is only offered when the premium is paid within the grace period offered by the insurance company.

When Does Automatic Reinstatement Apply?

The automatic reinstatement is typically available in cases where:

• The premium was accidentally missed.


• The policyholder pays within the grace period.


• The insurance provider provides automatic reinstatement as a part of the policy terms.

For instance, if the premium is due on April 1, but the insurer offers a 30-day grace period, you can pay the premium by April 30. There is no need for further formalities when the payment is made, and the policy is automatically reinstated.

Automatic Reinstatement vs Manual Reinstatement

There are typically two types of reinstatement in health insurance.

1. Automatic Reinstatement

This is the easier choice. When the overdue premium is paid during the due period, the policy is automatically renewed. This does not involve:

• Medical tests


• Health declarations


• Extra paperwork

2. Manual Reinstatement

Manual reinstatement is a process that takes place after the grace period has expired.

In this process, the policyholder may have to:

• Submit a request for reinstatement


• Pay premiums and fees as per the invoice.


• Undergo medical check-ups


• Provide additional documents

How to Request Reinstatement

In the event that your health insurance policy has lapsed, here are the common approaches to renew it:

• Check the Grace Period: The first step is to ensure that your policy is still in the grace period. If so, reinstatement may well be automatic.

• Contact the Insurer: Discuss the options for reinstatement with the insurance company or insurance advisor.

• Pay Pending Premiums: No late payments or late fees to be cleared.

• Provide documents, if necessary: If the policy has not been in use for a long time, the insurance company might request medical reports or health declarations.

• Wait for Confirmation: After the insurance company has completed the review, they will give you feedback to let you know if the policy has been reinstated or not.