IRDAI Asks Life Insurers To Increase Grace Period For Premium Payment

IRDAI, the insurance regulator on Thursday instructed life insurance companies to extend the grace period for renewal premium payment to 60 days for insured people in flood affected state of Karnataka and Kerala.

The premium payment may be due for some of the policies but in view of the severe damage due to the recent flood situation, policyholders are finding it difficult to make the payment towards the policies. So, to avoid the lapsation of coverage on these policies, it has been decided to provide this leeway.

"Under the circumstances, all life insurance companies are hereby instructed to facilitate such payment of renewal premiums by way of extending the existing grace period of 15 days or 30 days, as applicable to 60 days for payment of premiums due during the period from July 15, 2018 to September 30, 2018 for Kerala and for flood affected districts of Karnataka," it said.

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