Top 5 Mistakes People Make While Renewing Health Insurance in India
Renewing your health insurance might seem like a routine process — just pay the premium and continue your policy. But this simple step can turn into an expensive mistake if not done carefully. Most policyholders in India overlook small yet crucial details during renewal, which later lead to rejected claims, loss of benefits, or unnecessary premium hikes.
In this detailed guide, we’ll explore the top 5 mistakes people make while renewing their health insurance in India, and more importantly, how you can avoid them. Let’s make sure your next renewal protects you better, not costs you more.
💡 Why Health Insurance Renewal Matters
Before diving into the mistakes, let’s understand why timely and informed renewal is important.
Health insurance renewal ensures your medical coverage continues without interruption. In India, even a one-day delay in renewal can mean losing:
Your No-Claim Bonus (NCB)
Waiting period continuity for pre-existing diseases
The benefit of lifetime renewability (for some older policies)
Your renewal is more than a payment — it’s a chance to upgrade, review, and optimize your health coverage according to your current needs.
⚠️ Mistake 1: Forgetting to Review Policy Coverage Before Renewal Health Insurance In India
Many people simply renew their policy without reviewing what it actually covers. Life changes — your family grows, medical costs increase, and new illnesses emerge. But your old policy may still be based on outdated requirements.
✳️ Common Scenario:
Rahul bought a ₹5 lakh health policy in 2018. In 2025, he’s still renewing the same policy even though hospital expenses have doubled. When his father was hospitalized, he had to pay ₹1.2 lakh from his pocket.
💬 Tip to Avoid:
Before every renewal, review your policy sum insured, add-ons, and coverage limits.
Ask yourself:
Has my family size changed?
Are there new health issues to consider?
Are my coverage limits still sufficient for today’s medical costs?
If not, it’s time to upgrade your coverage or switch to a better plan.
⚠️ Mistake 2: Ignoring Waiting Periods and Pre-existing Clauses
Most health insurance plans come with waiting periods for specific conditions like maternity, diabetes, or pre-existing diseases. When you renew your existing plan without interruption, your waiting period continues from where it left off — a big advantage.
However, if you switch insurers or delay renewal, the waiting period resets, forcing you to start from zero.
✳️ Common Scenario:
Neha’s old policy had a 3-year waiting period for thyroid-related treatment. After 2.5 years, she switched to a cheaper insurer. Unfortunately, her new plan restarted the waiting period — she couldn’t claim her thyroid treatment for another 3 years.
💬 Tip to Avoid:
Always renew on time to preserve waiting period benefits.
If switching insurers, use the IRDAI portability option — it allows you to transfer your waiting period credit to the new insurer.
Double-check fine print before switching to ensure your accumulated benefits carry forward.
⚠️ Mistake 3: Missing the Renewal Deadline
This might sound simple, but many people forget to renew their policy on time. Even though insurers usually offer a 30-day grace period, any medical claim during this period won’t be accepted.
If the grace period passes, your policy lapses completely. This means:
You lose your No-Claim Bonus (NCB)
Your waiting period resets
You might even have to undergo fresh medical tests to reapply
✳️ Common Scenario:
Vikram missed his renewal by 15 days because he was traveling. When his wife fell sick during that time, the insurer refused to cover the expenses — the policy had technically expired.
💬 Tip to Avoid:
Set SMS or calendar reminders 15 days before your renewal date.
Enable auto-renewal via your bank or insurer’s online portal.
Keep your insurer’s app installed to get push notifications for due dates.
⚠️ Mistake 4: Not Comparing Premiums or Insurers Before Renewal
Many policyholders in India stick to the same insurer for years without checking if they’re getting the best value. But insurance is a competitive market — new plans often offer better coverage, lower premiums, and extra benefits like annual health check-ups or telemedicine.
✳️ Common Scenario:
Priya renewed her 5-year-old policy at ₹18,000 premium. A quick comparison showed another insurer offering similar benefits for ₹12,500 — a 30% saving!
💬 Tip to Avoid:
Use policy comparison websites like Policybazaar, Coverfox, or InsuranceDekho before renewal.
Compare these key parameters:
Premium vs. coverage
Network hospitals
Claim settlement ratio
Add-ons like critical illness or maternity cover
If you find a better deal, consider porting your policy instead of canceling it — you’ll retain your waiting period and NCB benefits.
⚠️ Mistake 5: Skipping Useful Add-ons and Riders
Renewal time is your best opportunity to enhance your coverage with add-ons or riders. Many people skip this, assuming their base policy is enough. But add-ons can make a huge difference during emergencies.
✳️ Common Add-ons You Might Need:
Critical Illness Rider: Covers major diseases like cancer or heart attack.
Hospital Daily Cash: Pays a daily allowance during hospitalization.
Room Rent Waiver: Removes limits on room rent charges.
Maternity Cover: Essential if you’re planning a family.
✳️ Common Scenario:
Ramesh’s health policy covered hospitalization but excluded room rent beyond ₹3,000 per day. When his father was admitted to a ₹5,000/day room, the insurer deducted the extra amount from his claim. A simple “room rent waiver rider” could have avoided this.
💬 Tip to Avoid:
During renewal, review all available add-ons and check if they suit your lifestyle and health goals. Spending a few hundred rupees extra can save thousands during treatment.
💡 Smart Tips to Avoid These Renewal Mistakes
Here are some quick actionable tips to make your health insurance renewal process smooth and beneficial:
Review coverage annually — medical costs rise, and so should your coverage.
Don’t wait for renewal date — start checking plans 2–3 weeks in advance.
Use digital portals — most insurers let you renew instantly online.
Maintain premium receipts — they’re useful for tax deductions under Section 80D.
Contact your insurer — if unsure, speak to a representative before renewing.
Enable reminders — small automation prevents big losses.
Check claim settlement history — before renewing or switching insurers.
📊 Real-Life Example: A Costly Renewal Mistake
A 2024 survey by Policybazaar revealed that 37% of policyholders in India missed their renewal deadlines by at least 5 days. Around 18% lost their No-Claim Bonus, and 12% had to reapply for new policies with higher premiums.
This shows how critical it is to stay proactive during renewals. The time you invest in reviewing your policy today can save you lakhs tomorrow.
🧠 Understanding IRDAI Portability Benefits
Many people hesitate to switch insurers because they fear losing benefits. However, the Insurance Regulatory and Development Authority of India (IRDAI) allows you to port your existing health policy to another insurer without losing waiting period or NCB advantages.
To port your policy:
Apply for portability at least 45 days before renewal.
Submit your existing policy details and claim history.
The new insurer will verify your records and issue the new policy with continued benefits.
This ensures healthy competition among insurers and gives customers more flexibility.
💬 Expert Advice: Renewal Is an Opportunity, Not a Formality
Think of health insurance renewal as an annual health audit.
It’s your chance to:
Upgrade your protection
Add family members
Reassess your health priorities
Most people focus only on paying the premium, but smart policyholders use this moment to optimize their entire coverage.
When you treat renewal as a chance to improve, your policy evolves with your life — and that’s how real financial security works.
✅ Conclusion
Renewing your health insurance is not just a routine task — it’s a vital financial decision. A small mistake today can lead to big losses later.
So, before clicking that “Renew Now” button, remember to:
Review your coverage
Compare options
Renew on time
Add necessary riders
Avoiding these 5 mistakes will help you stay protected, save money, and ensure peace of mind for you and your loved ones.
Your health insurance renewal should be a step forward, not a missed opportunity.
