Insurance regulator IRDAI has asked life insurers to enhance the grace period, for their customers, to pay renewal premiums by an additional 30 days in view of the disruption likely from the COVID-19 necessitated lockdown in many States.
“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. 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,” the Insurance Regulatory and Development Authority of India (IRDAI) said.
Insurers, however, are requested to contact policyholders well in advance so as not to have a discontinuance in coverage, the regulator said permitting certain relaxations.
In another relaxation, IRDAI said insurers can hold board meetings, due till June 30, through video-conferencing or other audio-visual means. With regard to submission of monthly returns for March 2020 by insurers and insurance intermediaries, the regulator said an additional time of 15 days will be allowed. Similarly, in case of quarterly returns, an additional period up to one month will be permitted.
Appealing to all insurers, insurance intermediaries and distribution channels to be sensitive to the needs of the policyholders in these trying times, IRDAI said it also appealed to all the policyholders to cooperate. The Authority said all insurers had been asked to maintain continuity of business operations through possible alternate modes, including telephonic and digital contact. They have been asked to display on their websites information on functioning of their offices and the alternate arrangements made for premium payments, renewal, settlement of claims and lodging of other service requests.
Separately, in a circular to the insurers, IRDAI Member (Life) K.Ganesh said the grace period for payment of premiums will be extended by one month in the areas where lockdown has been declared by State government.
On claim payment, the circular said any claim received may be settled expeditiously. Urging life insurers to consider developing quicker claim settlement process, IRDAI said the companies should provide information on their respective websites about admissibility or otherwise of COVID-19 death claims, for all products under the contracts already issued.
Specific information, product wise, related to any health insurance contracts already issued, regarding admissibility or otherwise of COVID-19 claims has to be provided in the website, the circular said.
