In a release dated March 23, 2020, the insurance regulator IRDAI has asked insurers to allow additional grace period of 30 days for renewal premium deposit towards life insurance policies if desired by the policyholders.
LIC on similar lines extended the deadline for renewal premium payment for life insurance up to April 15, 2020. In a statement, the country's state-run insurer said, In view of prevailing extraordinary circumstances in the country on account of Covid-19, LIC will give relaxation to its policyholders in payment of premiums due on in-force policies up to April 15, 2020, wherever customers are unable to deposit online or otherwise".
In respect of the health insurance plans, as per the release, the health insurance companies may condone delay in renewal for up to 30 days without considering such condonation as a break in policy. Nonetheless, the insurers are advised on contacting policyholders much in advance such that the insurance coverage does not ceases.
Further, besides extension of time for premium payment, IRDAI has allowed the following measures for the smooth functioning of insurance industry as a whole:
For board meetings of insurance companies which are scheduled till June 30, 2020, can be organized via video conferencing or other audio-visual modes as per the Rule 3 of the Companies (Meetings of Boards and its Powers) Rules, 2014 as amended on 19th March, 2020.
And for submission of monthly returns by insurers and other intermediaries in the industry for March 2020, an additional time of 15 days will be granted. Likewise for quarterly returns, an additional time of up to 1 month will be allowed.