 "Irda allows advance premium collection")
The Insurance Regulatory and Development Authority (Irda) on Monday modified its linked and non-linked insurance products regulations to allow advance premium collection.
“Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year,” Irda said in a circular addressed to the CEOs of life insurance companies.
However, if the advance premium is collected for the next financial year, then insurers can collect the same “for a maximum period of three months in advance of the due date of the premium”, the regulator noted in the circular.
The premiums collected in advance can only be adjusted on the due date of the premium. Further, the commission shall only be paid after adjustment of premium on due date.
Earlier, Irda had said that the premium due might be accepted 30 days before the due date. The regulator had also said that in the monthly premium payment mode, insurers could accept three months’ premiums in advance only on the date of commencement of the policy.
“Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year,” Irda said in a circular addressed to the CEOs of life insurance companies.
However, if the advance premium is collected for the next financial year, then insurers can collect the same “for a maximum period of three months in advance of the due date of the premium”, the regulator noted in the circular.
The premiums collected in advance can only be adjusted on the due date of the premium. Further, the commission shall only be paid after adjustment of premium on due date.
Earlier, Irda had said that the premium due might be accepted 30 days before the due date. The regulator had also said that in the monthly premium payment mode, insurers could accept three months’ premiums in advance only on the date of commencement of the policy.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%