IRDAI Extends Grace Period For Life Insurance Policies Till May 31
New Delhi: Insurance regulator IRDAI has again extended the grace period for premium payment or renewal of life insurance policies, which were due in March, till May 31.
“As the lockdown has been extended up to May 17, keeping in view the difficulty faced by some policyholders in renewing their policies in time, the IRDAI has allowed extended grace period up to May 31 for all policies where a premium was due in March,” it said.
The Insurance Regulatory and Development Authority of India (IRDAI) had on March 23 and April 4 announced additional grace period of 30 days for policies where the premium was due in March and April to provide relief to the policyholders amid the nationwide lockdown.
The objective of the grace period, it said was to pay all the premiums due within that period to keep the policy coverage in force.
“Life insurance companies are equipped to provide the facility to pay premiums online. The policyholders are encouraged to make use of this to minimise their personal visit to the offices of the insurers,” it said.
The IRDAI in April had advised non-life insurers to inform policyholders about properties remaining unoccupied after May 3 and the policy-holders to read the policy conditions.
In a statement, the IRDAI had welcomed the stand of the general insurance industry to continue to extend insurance cover for properties covered under their fire insurance policies though they remained unoccupied for over 30 days.
The IRDAI had informed that the gesture of giving one-time relaxation for the properties unoccupied during the national lockdown between March 25 to May 3, is in the interest of policyholders given the current unprecedented situation.
As per the fire insurance policy condition, the insurance cover ceases to exist if a property remains unoccupied for more than 30 days.
“The General Insurers have been advised by the Authority to inform the policyholders of how the relevant clause(s) would apply beyond 3rd May 2020 in all policies and what action is needed by the policy-holders to avail the uninterrupted coverage.
“The insurers need to take a reasonable and suitable approach depending on the local situation in different geographies,” IRDAI said.
The IRDAI also asked the policyholders to read their policy conditions and be aware of the policy requirements in case they or their insured properties are located in areas where there will be prolonged restriction of movement.