Lapse Policy

A policy lapses when the premium is not paid even after the grace period. Once lapsed, the policyholder loses insurance coverage and benefits, including risk cover.

Insurance regulations and revival rules in India are governed by the Insurance Regulatory and Development Authority of India.

What Happens When a Policy Lapses?

• Insurance coverage stops
• No claim benefit (in most cases)
• Policy benefits may be reduced or lost

Revival of Lapsed Policy

• Paying pending premiums
• Paying interest/penalty
• Submitting health declaration (in some cases)

Why Policy Lapse Matters

• Loss of financial protection
• Waste of previously paid premiums
• Risk to dependents

How to Avoid Policy Lapse

• Pay premiums on time
• Set auto-debit reminders
• Maintain sufficient balance

"If a person fails to pay insurance premium even after the grace period, the policy becomes inactive (lapsed)."