People seeking health insurance will soon have the option to pay premium on monthly, quarterly and half-yearly basis in addition to the current practice of annual payments, as per a circular issued by regulator Irdai.
Irdai, in a communication to general and standalone health insurers, has also added that payment in installments should not lead to change in basic premium and charging structure under the approved individual product.
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"The premium mode (frequency) proposed to be added may be monthly, quarterly or half yearly and the resulting premium amounts under each mode (frequency) are consistent with premium amounts under other premium modes (frequencies) of the underlying product," the circular said.
The change in frequency of premium payment has been permitted through a circular permitting insurers to go in for minor modifications in policies filed by them.
The Insurance Regulatory and Development Authority's move is expected to give more flexibility to insurance companies to offer individual health insurance products, besides deepening the market.
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