Amid the coronavirus pandemic, a major relief for life insurance policyholders, as the Insurance Regulatory and Development Authority of India (IRDAI) has provided an additional 30-day grace period for policyholders to pay premium on life insurance policies, whose renewal date fall in March and April.
Insurance Regulatory and Development Authority of India (IRDAI) has already provided additional time for payment of renewal premium in case of health insurance policies and motor third party insurance.
Responding to representations made by life insurers and Life Insurance Council, the regulator issued the instructions for providing the additional grace of 30 days for premium payments.
In another major move, IRDAI said that in cases where unit-linked policies mature and fund value is to be paid in lump sum; life insurance companies may offer settlement options in accordance with Regulation 25 of IRDA (Linked Insurance Products) Regulations, 2013.The relaxation is allowed for unit-linked policies maturing up to May 31, 2020, it said.