IRDAI instructs life insurers to extend grace period renewal premium payment by 60 days

Insurance Regulatory and Development Authority of India (IRDAI) today instructed life insurers to extend the grace period for payment of renewal premium by 60 days for policyholders of flood-hit Kerala and Karnataka.

By: PTI | New Delhi | Updated: August 30, 2018 9:48 PM

Coverage under such policies may get lapsed due to non-payment of renewal premiums, it said.

Insurance Regulatory and Development Authority of India (IRDAI) today instructed life insurers to extend the grace period for payment of renewal premium by 60 days for policyholders of flood-hit Kerala and Karnataka. Due to recent heavy rains and floods in Kerala and Karnataka, normal life has been severely affected and disrupted and policyholders are facing difficulties in timely payment of renewal premiums which might have already become due for payment, the regulator said in a statement.

“Under the circumstances, all life insurance companies are hereby instructed to facilitate such payment of renewal premiums by way of extending the existing grace period of 15 days or 30 days, as applicable to 60 days for payment of premiums due during the period from July 15, 2018 to September 30, 2018 for Kerala and for flood affected districts of Karnataka,” it said. Coverage under such policies may get lapsed due to non-payment of renewal premiums, it said.