HeXie Health Insurance Sued Over Lapsed Policy Reinstatement Dispute

A woman in Shenzhen has sued HeXie Health Insurance Beijing branch, with the first hearing held on July 22 in Shenzhen, after the insurer allegedly gave no reminder during a 60-day grace period and then required a new medical exam to reinstate her policy, according to Jiemian News. The dispute centers on a critical illness policy she bought in December 2020 with a 30-year premium term. Her renewal payment due on December 26, 2025, was not collected because her bank card lacked sufficient balance, and the insurer notified her on February 25, 2026, that the policy had lapsed.

Jiemian News said another policyholder in Shanghai described a similar experience: she had paid premiums for four years and said HeXie Health Insurance normally sent failed-payment reminders in earlier years, but sent none during the 60-day grace period in 2026. Industry sources quoted by Jiemian News said insurers usually try multiple channels, including SMS, phone calls, email and mailed notices, to alert customers after a failed premium collection. A lawyer cited in the report said current insurance law does not clearly impose a statutory duty on insurers to successfully notify policyholders during the grace period, but that a refusal to restore coverage on original terms could face legal risk if the insurer cannot prove the insured’s risk materially increased during the short lapse.

HeXie Health Insurance’s 2025 social responsibility report said the company generated 75.826 billion yuan in revenue and 63.458 billion yuan in gross premium income last year. Its 2024 report showed revenue of 75.325 billion yuan and original premium income of 64.116 billion yuan. The report also said the insurer received 1,773 consumer complaints in 2025 and 316 complaints transferred by China's National Financial Regulatory Administration and its local offices.