Policy Year
What it means, and what it does to a claim.
The twelve months running from your commencement date — not the calendar year, and not the financial year.
Why it matters
Every annual limit resets on this clock: your sum insured, your restoration, your health check-up entitlement. Two hospitalisations eleven months apart can fall in the same policy year and share one limit, while two a month apart can straddle the boundary and get a fresh one each. Knowing your commencement date is worth more than it sounds.
The legal definition
Policy Year means a period of twelve months beginning from the Commencement Date and ending on the last day of such twelve-month period. For the purpose of subsequent years, Policy Year shall mean a period of twelve months commencing from the end of the previous Policy Year and lapsing on the last day of such twelve-month period.
Quoted verbatim from an IRDAI-filed policy wording. Definitions are standardised across insurers, but the limits attached to them are not — always read your own policy schedule.
Related terms
- Policy Schedule — The document attached to your policy naming the insured persons, the sum insured, the policy period and the sub-limits your cover is actually subject to.
- Renewal — Continuing the same policy for another term by paying the premium, keeping everything you have already accrued.
- Sum Insured — The maximum the insurer will pay in a policy year.
Disclaimer: Figures shown here are compiled from IRDAI annual reports and public grievance disclosures, and from insurer public disclosures and policy wordings. Claim settlement ratios and complaint volumes are three-year averages for FY 2024–26. Premiums are indicative illustrations for the stated profile, not quotes — your actual premium depends on your age, health, city, habits and underwriting. Scores are Myinsurancebro's own assessment. Always read the official policy document and speak to an advisor before buying. Myinsurancebro is an IRDAI-licensed insurance advisor — we do not manufacture or underwrite any insurance product.