What is the nature of the reinstatement provision in a health insurance policy?

The reinstatement provision in a health insurance policy is considered mandatory. This means that when a policyholder has lapsed their coverage due to non-payment of premiums, the insurance company is required to provide terms under which the policy can be reinstated. This provision typically includes conditions that must be met for reinstatement, such as an application for reinstatement and payment of overdue premiums within a specified period.

This requirement ensures that insured individuals can regain their coverage after a lapse, promoting continuous access to health insurance benefits. It also sets a clear framework for both insurers and policyholders regarding the process of restoring coverage. While some elements of reinstatement may involve specific conditions, the overarching requirement for insurers to offer reinstatement options underscores its mandatory nature.