Waiting period, also known as the “grace period” in insurance, refers to a specific time frame after a policy becomes active during which the benefits cannot yet be used. This means that if you attempt to file a claim during this period, it will most likely be denied by the insurance company.
The waiting period in insurance is often the reason claims can’t be processed—especially when policyholders are unaware of this condition at the time of purchase. While it may seem simple, this clause can have a major impact on your coverage rights.
This article explains what a waiting period is, how it works, the different types, and real examples of claims denied due to this clause. You’ll also get tips on how to avoid claim rejection and learn whether all insurance products include a waiting period.
A waiting period is a specific length of time after your policy becomes active during which your insurance coverage cannot yet be used. In other words, if you try to file a claim during this period, it will most likely be rejected by the insurer. This term is most common in general insurance such as health or accident insurance, where risks need to be validated before benefits apply.
The purpose of a waiting period is to prevent fraudulent or opportunistic claims. For example, someone might buy insurance after already knowing they’ll require expensive treatment and then file a claim right away. The waiting period gives the insurer time to assess risk and ensures the policy is used for its intended purpose. It also plays a key role in maintaining the insurer’s financial stability by reducing early-stage claim loads.
For more definitions like "waiting period," explore other important insurance terms in the Roojai glossary.
Waiting periods vary depending on the type of coverage. Here are the most common types applied by insurance providers:
General Waiting Period
Usually lasts 14–30 days after the policy starts. During this time, no claims can be made—except for accidents. It helps insurers manage initial risk from new policyholders.
Waiting Period for Specific Illnesses
Conditions like kidney stones, fibroids, or cataracts often have longer waiting periods, sometimes up to 12 months. These illnesses are commonly pre-existing before policy purchase.
Maternity Waiting Period
For pregnancy and childbirth coverage, the waiting period can be up to 280 days. This means the policy must be active from early pregnancy to receive these benefits.
Hospitalization Waiting Period
Some products impose a 30-day waiting period for hospitalization (except accidents), especially for new customers.
Imagine someone buys a health insurance policy and files a claim 20 days later for a heart condition. The claim is denied because the waiting period for heart-related illnesses is 90 days. This real-world example shows how a lack of understanding of waiting periods can lead to financial setbacks.
Not all insurance types include waiting periods. For example, personal accident insurance often doesn’t have one, meaning benefits can be used immediately after the policy becomes active. However, products like health insurance or maternity coverage almost always include waiting periods.
To make sure your claim isn’t rejected due to a waiting period, follow these tips:
Read and understand your policy carefully before buying. Pay special attention to waiting periods and benefit exclusions.
Don’t wait until you’re sick to buy insurance. If you buy coverage only after a health issue arises, your benefits may not be usable right away.
Consult your agent or insurer. Ask questions about waiting periods and claim conditions so you can make the most of your coverage.
Waiting periods are a crucial part of every insurance contract and should be clearly understood by anyone considering a policy. Many people are disappointed not because their policy lacks benefits—but because they didn’t understand when those benefits take effect.
A solid understanding of waiting periods helps you avoid surprises and get the most from your insurance plan. To ensure you receive the best protection and a smooth claims process, choose a health or personal accident insurance plan from Roojai. Everything—from benefits and waiting periods to premiums—is clearly laid out online and can be tailored to your needs.
Start comparing health insurance products today only at Roojai!