BIG RELAXATION TO LIFE INSURANCE POLICY HOLDERS IN THE WAKE OF COVID-19

Big Relaxation to Life Insurance Policy Holders in the wake of COVID-19

Key highlights :

> IRDAI extended grace period up to 31st May, 2020 for all policies where premium was due in the month of March, 2020.

Overview :

> The Insurance Regulatory and Development Authority of India (IRDAI) vide Circular Ref: IRDAI/Life/Grace Period dated 09.05.2020 has allowed ADDITIONAL GRACE PERIOD FOR LIFE INSURANCE POLICIES in the wake of Covid-19 pandemic.

Key Points :

> First, IRDAI had announced on 23rd March, 2020 and 4th April 2020, additional Grace Period of 30 days for the policies where premium fell due in the months of March, 2020 and April, 2020.

> Now lockdown has been further extended up to 17th May 2020, the Authority has now allowed extended grace period up to 31st May 2020 for all policies where premium was due in the month of March, 2020.

> Kindly note that : Objective of Grace Period allowed is to pay all the premiums due within that period so as to keep the policy coverage in force.

> Life insurance companies are equipped to provide facility to pay premiums online.

> The policyholders are encouraged to make use of this provision so as to minimize their personal visit to the offices of the insurers.

I hope, your all doubts are cleared on “Big Relaxation to Life Insurance Policy Holders in the wake of COVID-19”

Official Source :

https://prsindia.org/files/covid19/notifications/5086.IND_IRDAI_GracePeriod_09052020.pdf

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AUTHOR : CS LALIT RAJPUT (CLICK HERE TO VIEW PROFILE)

About Author : CS Lalit Rajput (PARTNER AT Xcede Consultech LLP) AND CAN BE REACHED AT consultech@xcede.in /8802581290