Keeping in mind the nationwide lockdown, IRDAI has asked general insurance and standalone health insurers to give an option to policyholders to spread their health insurance premiums across 12 months.
This means that policyholder can now pay their health insurance premiums on a monthly, quarterly or half-yearly basis.
In a circular, IRDAI said, “In view of prevailing conditions owing to COVID-19 outbreak, considering the need for easing the payment of health insurance premiums, all the insurers are allowed to collect health insurance premiums in installments.”
IRDAI has asked insurance companies to introduce this facility for all policies sold or renewed till March 31, 2021. However, insurance companies can continue this facility permanently.
Mayank Bathwal, CEO, Aditya Birla Sun Life Health Insurance believes that the move would help policyholders affected due to nationwide lockdown. “Currently, many people have been facing financial constraints. These people might want to maintain liquidity to meet household expenses. A relaxation in premium payment especially during lockdown would help them manage cash crunch.”
