Reinstate a Policy

The policy reinstatement is the process of restoring an insurance policy back in effect after it has been previously terminated due to various reasons, most often scenario being that the insured has missed the premium payments. The reinstatement is usually done at the request of the Insured and can be accepted in most cases conditionally by the Insurer. The most encountered conditions could be:

  • The cover is not provided from the moment the premium passes it’s due date until it’s paid by the Insured;

  • The back premium is collected for the suspended period;

  • The quality of the risk has not changed (it has not degraded);

  • The duration of the period in which the cover of the policy is not active does not exceed a certain amount of time.

The Suspended status is a policy state between InForce and Lapsed. This only applies for policies with unpaid installments, where at the product configuration level, the Suspension field is set as Yes. During suspension, the installments are not modified. Payments can be allocated on unpaid installments and the payment schedule is updated with the subsequent status (e.g. Paid) for the installment. You can cancel a policy that is in Suspended status. Policies automatically transition to the Lapsed status one day after the Suspended period expires. You can configure the duration of the policy suspension. Learn how, by accessing the Configure the Policy Suspension Duration page.

View the workflow for the policy suspension and reinstatement below.

With Policy Administration, the policy reinstatement functionality facilitates a policy transition from Suspended back into InForce, or from Suspended to Canceled/Declined.


If a payment is allocated to an unpaid installment, where the payment date is less than the due date of the previously unpaid installment, then the policy is transitioned back into InForce without the need of a manual reinstatement.