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Coronavirus: IRDAI asks insurance firms to allow a 30-day grace period for paying life insurance policies' premium

Coronavirus: IRDAI asks insurance firms to allow a 30-day grace period for paying life insurance policiesRepresentational Image
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In the view of disruptions caused by lockdowns across the nation amid coronavirus (COVID-19) outbreak, the Insurance Regulatory and Development...

In the view of disruptions caused by lockdowns across the nation amid coronavirus (COVID-19) outbreak, the Insurance Regulatory and Development Authority of India (IRDAI) on Monday asked life insurance companies to provide an additional 30 days of grace period for paying renewable premiums if desired by the policyholders.

"In case of health insurance policies, the insurers may condone delay in renewal up to 30 days without deeming such condonation as a break in policy," said the IRDAI in a circular.

The government of India has initiated various measures and several states have enforced lock-down in some areas to prevent the spread of COVID-19. Such an action may result in some disruption in the operations of insurance companies and other entities connected with the insurance industry.

To ensure proper service to policyholders and customers, all the insurers have been asked to maintain continuity of business operations through possible alternate modes including telephonic and digital contact. Also, all insurance companies have been asked to display on their websites, the information on the functioning of their offices and the alternate arrangements made for premium payments, renewal, and settlement of claims and lodging or other service requests.

In the case of health insurance policies, the releases say, the insurers may condone delay in renewal up to 30 days without deeming such condonation as a break in policy. However, insurers have been requested to contact the policyholders well in advance so as not to have discontinuance in coverage.

In case of Board meetings of insurers, the meetings due till June 30, 2020, maybe held through video – conferencing or other audio-visual means following Rule 3 of the Companies (Meetings of Boards and its Powers) Rules, 2014 as amended on March 19, 2020.

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