Understanding Moratorium Period in Health Insurance

The moratorium period ensures claim security for long-term policyholders. Here’s everything you need to know about its purpose and benefits.
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3 min
14-May-2025
Understanding policy terms in health insurance is vital for maximising your benefits.

One such term is the moratorium period, introduced by IRDAI to protect long-term policyholders. Especially important for those with pre-existing or chronic conditions, it offers lasting security against claim rejections based on past non-disclosures.

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What is the moratorium period in health insurance?

The moratorium period is a regulatory safeguard under which insurers cannot reject claims due to unintentional non-disclosure or misrepresentation—after 8 continuous claim-free years.

Only proven fraud is exempt—this ensures peace of mind for policyholders who may have missed disclosing minor details when buying a policy.

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IRDAI guidelines on moratorium period

IRDAI mandates the moratorium period to increase consumer protection. After eight consecutive claim-free years:

Claims become non-contestable.

Your policy’s validity or claim eligibility cannot be challenged for past disclosure errors.

Fraud remains the only exception.

This regulatory move builds transparency, trust, and fairness in the health insurance ecosystem.

How does the moratorium period benefit policyholders?

1. Claim security after 8 years

Say goodbye to worries over forgotten declarations—after 8 years, your coverage is locked in.

2. Supports genuine policyholders

Honest mistakes won’t cost you your claim. The moratorium recognises human error.

3. Encourages long-term renewals

It rewards disciplined renewers—adding long-term value to your plan.

4. Reduces disputes with insurers

Fewer disputes = faster approvals, smoother claim experiences.

5. Applicable across insurers

This isn’t an insurer-specific perk—IRDAI mandates this across all providers.

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Impact of moratorium on pre-existing disease claims

1. No rejection after 8 years for old conditions

Forget the fear of claim denial due to past health history.

2. Improves access to treatment

You can confidently seek care for chronic or long-standing issues.

3. Helps high-risk individuals

If you’ve had multiple ailments or complex medical history, the moratorium is your shield.

4. Reinforces non-contestability clause

A legally backed promise: your honest claims are safe.

5. Reduces need for exhaustive documentation

After 8 years, filing a claim becomes smoother, faster, and stress-free.

Worried about pre-existing disease cover?

Opt for plans with reduced waiting periods, chronic care benefits, and wellness perks. Get a detailed quote tailored to your medical history – Compare & choose now.

Difference between waiting period and moratorium period

AspectWaiting PeriodMoratorium Period
PurposeEarly-stage condition restrictionLong-term claim protection
Duration1–4 years8 claim-free years
Impact on ClaimsCan restrict early claimsNo rejection for past errors post 8 years
ScopeCondition-specificBroad—applies to all disclosures
Benefit FocusShort-termLong-term protection


Together, these timelines guide both your early expectations and future protections under health insurance.

Conclusion

The moratorium period is not just legal jargon—it’s a game-changer for loyal policyholders. It guarantees that after 8 clean years, your health insurance stands by you, even if there were minor slip-ups at the beginning.

This provision:

Rewards consistent renewals

Protects long-term health planning

Reduces disputes and delays

Encourages transparency and coverage loyalty

Still comparing? Choose health insurance with ₹10 lakh cover starting at just ₹9.3/day#—ideal for long-term coverage, chronic conditions, and fast claims.

Check your premium now*T&C Apply. #Insurance premium indicated is for healthy male aged 18 years and is exclusive of tax.

Frequently asked questions

How long is the moratorium period in health insurance policies?
The moratorium period in health insurance is 8 continuous claim-free years. After this duration, insurers cannot reject claims based on non-disclosure or misrepresentation, unless fraud is proven. It applies across all IRDAI-regulated health insurance policies in India.

Are pre-existing diseases covered after the moratorium period?
Yes, after completing the 8-year moratorium period, claims related to pre-existing diseases cannot be denied due to past non-disclosures, unless there’s evidence of fraud. This offers long-term protection and reduces claim disputes for chronic or undiagnosed conditions.

Does every health insurance policy have a moratorium period?
Yes, all individual and family health insurance policies regulated by IRDAI include a moratorium period clause. It applies uniformly across insurers, ensuring long-term policyholders receive consistent protection regardless of the company or plan selected.

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Disclaimer

*T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Co. Limited , Star Health & Allied Insurance Co. Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limitedunder the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also a distributor of other third party products from Assistance Services providers such as CPP Assistance Services Pvt. Ltd., Bajaj Finserv Health Ltd. etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective Assistance service provider company.



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