HYDERABAD: Insurance regulator IRDAI has allowed extension of grace period for payment of renewal premium on all life insurance policies by an additional 30 days.
It is applicable for all life insurance policies “whose premium fell/falls due on or after November 8, 2016 till December 31, 2016,” said a communication from the Insurance Regulatory and Development Authority of India to CEOs of all life insurance companies.
The grant of the additional grace time follows a representation from the Life Insurance Council to that effect. “This special one off dispensation is given so that policyholders do not suffer from non-payment of premiums due to recent cash crunch. All life insurers are advised to comply,” the communication from IRDAI Member-Actuary Pournima Gupte said. The grace period (beyond the due date for payment) varies from 15 to 30 days depending on the policy.
