Covid19 Impact: Life Insurance Policyholders Get Additional 30Days Time For Renewal Payment

Insurance regulatory body IRDAI amid nationwide lockdown has allowed additional time of 30 days for paying renewal premium towards life insurance policies falling due between March and April.

Earlier, IRDAI allowed additional time for payment of renewal premium for health and motor third-party insurance cover.

In response to calls made by Life Insurance Council and life insurance companies, the IRDAI has come up with guidelines to provide additional window of 30 days grace period for renewal payments.

Moreover, the regulator said where unit-linked policies mature until May 31, 2020 and fund value is to be paid as lumpsum amount, life insurance companies "may offer settlement options" as per applicable rules.

"This one time option is regardless of whether such option exists or not in the specific product, .. said Irdai in a circular.

IRDAI last week said health insurance and third party vehicle cover due for renewal between March 25 and April 14, 2020 can be paid until April 21, 2020. Risk coverage on such policies though shall continue to exist from the policy renewal due date.

Also, IRDAI has granted leeway to insurers by offering more time to file regulatory returns. For filing monthly returns, additional time granted is 15 days while for quarterly, half-yearly and yearly returns, insurance companies get additional 30 days time.

GoodReturns.in