Money & Banking

IRDAI allows payment of health cover premium in instalments

G Naga Sridhar Hyderabad | Updated on April 21, 2020 Published on April 21, 2020

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The Insurance Regulatory and Development Authority of India (IRDAI) has allowed the payment of health insurance premiums in instalments. “In view of prevailing conditions due to the outbreak of Covid-19, considering the need for easing of payment of health insurance premium, all insurers are allowed to collect health insurance premium in instalments,” said DVS Ramesh, General Manager - Health, IRDAI, on Tuesday.

The premium instalment facility may be offered either as a permanent feature or temporary relief for12 months (one policy year) in respect of all health insurance policies that are due for renewal up to March 31, 2021, he said in circular.

The details of the instalment facility for health insurance policies should be clearly displayed on the portals of the insurance companies, including specific details of names of the products.

No discrimination among the policyholders will be allowed and the products with instalment facility should be extended to all customers. A consent from the policyholders who avail instalment facility for payment of premium should also be obtained.

The decision of the regulator to allow health cover premium payment in instalments assumes significance in the wake of increasing demand for health cover in view of the Covid19 pandemic and the national lockdown, which has adversely hit the earnings of some sections of the society.

According to industry estimates, the sales of health insurance went up by up to 20 per cent in the last two months in the wake of coronavirus outbreak.

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Published on April 21, 2020
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