There is a good news for policyholders who prefer paying insurance premium physically.
IRDAI has asked insurance companies to extend the grace period for payment of renewal premiums by one month. That means, policyholders will get two months over and above the due date to renew their existing insurance policies.
IRDAI said, “In case of life insurance policies, there is a grace period for payment of renewal premiums. Insurers have been asked to enhance the grace period by additional 30 days if desired by the policyholders.”
“Further, in case of health insurance policies, the insurers may condone 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 discontinuance in coverage,” said IRDAI.
IRDAI has also urged insurance agents to be sensitive to the needs of policyholders in these trying times.
Mayank Bathwal, CEO, Aditya Birla Health Insurance said that many insurers had requested IRDAI to give relaxation to policyholders to renew their insurance policies. “Thankfully, IRDAI has considered our request. The move will bring relief to insurance companies, agents and policyholders,” he said.
AV Girija Kumar, CMD, Oriental Insurance said that while the extension would help many policyholders who are unable to renew their insurance policies due to lockdown, we have been asking our clients to make online premium payment. In fact, we have set up a helpdesk for our policyholders who wish to pay their premium online.