Health insurance policy renewal clause

POSTED BY Ashesh Bharadwaj ON June 9, 2012 2:36 pm COMMENTS (2)

I was reading the Mediclaim Insurance policy document of National Insurance Co. Ltd. and came across a clause under “Contidions”:

“5.8 – The policy may be renewed by mutual consent. The Company shall not however be bound to give notice that it is due for renewal and the Company at any time cancel this policy by sending the insured 30 (thirty) days notice by Registered Letter at Insured’s last known address and in such event the Company shall refund to the insured a prorata premium for unexpired Period of Insurance”

If I am correct to understand, this means that there is no security to me, the company can cancel the policy anytime at their will. It seems I read somewhere that medical insurance company are bound to renew the policy in general. Am I missing something?

2 replies on this article “Health insurance policy renewal clause”

  1. Dear Ashesh, IRDA is implementing the so called compulsory renewal clause. So no reason to worry for future.

    Thanks

    Ashal

    1. Dear Ashal, Thanks for the clarification.

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