In the midst of the Corona crisis, insurance regulator Irdai has allowed insurance companies to take premiums of health insurance in instalments in view of the economic situation arising. In September last year, Insurance Regulatory and Development Authority of India (Irdai) allowed insurance companies to add the option of premium payment (payment of premium in frequency/instalment) for products related to individual health insurance. Irdai has recently announced a relaxation of all manner of rules for insurance companies and policyholders, given the current circumstances.
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Irdai has issued a circular saying, "All insurance, considering the circumstances arising out of the Kovid-19 epidemic and the need to simplify the rule of payment of premiums for health insurance. Companies are allowed to collect the premiums of health insurance in installment… the product for which they feel it is right to do so ”. Have done that there will be no change in the basic premium table and charging structure. Frequency of premium payment can be monthly, quarterly or half-yearly.
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In its statement, Irdai has said that insurance companies have to ensure that the total amount of premium in any frequency mode is equal to the total premium amount in other frequency modes. The same, Irdai has said that the facility of payment of premium in instalment can be made permanent with compliance with the rules or can be applied for temporary relief for 12 months (one policy year). The regulator has said that this arrangement can be made for policies with a renewal date of March 31, 2021.