IRDAI has extended the grace period to renew life insurance policies by another 30 days.
“This special one-off dispensation is given so that policyholders do not suffer from non-payment of due premiums due to recent cash crunch,” says the IRDAI circular.
This grace period is offered to policies whose due dates fall between November 8 and December 31.
Typically, life insurance companies provide a grace period of 30 days to renew life insurance policies after the due date.
Ritesh Sheth of Tejas Consultancy says, “In India, many policyholders still pay premiums in cash, especially if the premium amount is small. This move will give relief to such policyholders.”
On November 8, in an attempt to curb black money, PM Modi announced the discontinuation of Rs.500 and Rs.1000 notes.