Irdai extends premium renewal period by 30 days as lockdown continues

In the wake of COVID-19 outbreak wherein normal services have been disrupted, the Insurance Regulatory and Development Authority (Irdai) on Monday gave certain relaxations to the policyholders and insurance companies.

The regulator has asked the life insurers to extend the grace period for payment of renewal premiums by an additional 30 days if the policyholders want it. It has asked the health insurance companies that the insurers may excuse delay in renewal up to 30 days without deeming such condonation as a break in policy.

“However, insurers are requested to contact the policyholders well in advance so as not to have a discontinuance in coverage,” Irdai said.

Life Insurance Corporation has offered relaxation to policyholders on payment of premiums due on inforce policies up to April 15.

This is aimed at helping policyholders who have not been able to pay the premiums on time because of the virus outbreak.

As far as the insurance companies are concerned, Irdai has allowed the insurers to hold board meetings due till June 30 via video-conferencing or audio visual means. In case of submission of monthly returns for March, the regulator has given additional 15 days’ time to the insurers.

“Similarly, in case of quarterly returns, an additional period up to a month will be permitted,” the regulator said.