In a relief for policyholders, the Insurance Regulatory and Development Authority of India (IRDAI) has given an additional 30-day grace period to pay premium on life insurance policies, whose renewal date fall in March and April, PTI reported. The decision by the IRDAI comes amid the nationwide lockdown to contain the spread of coronavirus epidemic.
The development comes after IRDAI providing additional time till April 21 for payment of renewal premium in case of health insurance policies and motor third party insurance. The decision was taken by the regulator after life insurers and Life Insurance Council flagged operational constraints and difficulties being faced by policyholders due to the lockdown.
It further said that life insurers “may offer settlement options” in accordance with relevant regulation where unit-linked policies mature (up to May 31, 2020) and fund value is to be paid in lump sum. “This one time option is regardless of whether such option exists or not in the specific product,” the IRDAI circular read.
However, according to the regulator, life insurers will have to exercise all due care and diligence to explain clearly the possible downside risk of continued fluctuation of fund value based on daily net asset value (NAV).
Besides, IRDAI has also provided insurers additional time for filing regulatory returns — additional 15 days filing monthly returns and 30 days for quarterly, half-yearly and yearly returns.
Meanwhile, the Life Insurance Corporation (LIC) of India had on March 31 contributed Rs 105 crore to PM CARES Fund. “LIC Contributes Rs.105 Crore to PM CARES Fund to support India’s fight against Covid-19. LIC reaffirms its solidarity in supporting the efforts of Government of India in combating the global pandemic,” LIC had tweeted.
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