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Grace Period in Car Insurance Policy

    Grace Period in Car Insurance Policy

    Grace period is the specific additional time you get after the due date to pay the premium without coverage lapsing and void.

    You may enjoy the benefits of the No Claim Discount (NCD) during this period that you might have earned in your previous years for not raising claims.

    Duration of grace period

    For a car insurance policy, the period is usually between 10 to 31 days from the date your policy expires.

    However, it may vary according to the provider. The amount of time granted in an insurance grace period is indicated in the insurance policy contract. Please check and confirm that information with your insurer. For example:

    • Allianz insurance allows a 31 days grace period from the premium due date to pay the premium, during which period policy shall remain in force
    • Takaful Malaysia allows a 30 days grace period is granted from each contribution due date
    • Lonpac Insurance allows a 14 days grace period for payment of each premium after the first policy year
    • Chubb allows a 31 days grace period commencing from the premium due date

    *Note: You can renew your policy after the period but you will need to pay an extra amount or your policy may cease

    How insurance grace period is calculated?

    Example (You have a grace period of 10 days):

    If your policy premium payment is due on 1 September, you won’t be penalised until 11 September.

    After that period, your policy will likely be terminated and coverage will cease if you have yet to make a payment.

    What can happen if you fail to renew your policy past the grace period?

    • The insurance company will not be liable to provide any cover or accept any claim
    • Invalid/void insurance policy can put you in legal trouble
    • You will lose your NCD
    • You will be liable to pay for the third-party claim out of your pocket

    What to do if your insurance expires

    Usually, your insurance company or insurance agent will remind you to renew your insurance policy prior to the expiry date.

    However, if you missed the expiration date, please contact your insurer and tell them about the expiration of your policy. You can contact them through the website, call the hotline or email them.

    Ensure to renew insurance policy on time

    Although the insurer provides the extra time to renew your policy, ensure to keep your car insured at all times.

    Not renewing the policy on time can bring a lot of difficulties to you. Please keep your car insured because unforeseen situations like floods, riots, and landslides might take place unexpectedly at any time.

    For your convenience, you can renew your insurance online. You may use Bjak to enjoy a speedier renewal process in less than 10 minutes. You can review your insurance plan and check if you want to change your plan or add on some riders.


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