The life insurers can collect advance premium up to three months in advance from the due date.
In a circular issued on Monday as an addition to the existing regulations for both unit-linked and non-linked insurance products, T S Vijayan, Chairman, Insurance Regulatory and Development Authority (IRDA) said the premium collected in advance should only be adjusted on the due date of the premium.
The commission to the agents, however, could be paid only after the adjustment of premium on due date,’’ he added.