The Insurance Regulatory and Development Authority of India (IRDAI) has extended the grace period to renew life insurance policies that were due in March until 31 May 2020. This extension is in line with the extension of the nation-wide lockdown due to the pandemic.
The authority had announced an extension in a grace period to pay premiums that were due in March and April by 30 days. The announcement was made as part of the relief for the unforeseen lockdown that suddenly hit the public. Since the lockdown is extended for the third time in a row, until 17 May, the regulator considers that some policyholders may not be able to renew their policies at such testing times. Therefore, the extension has been announced.
Also Read: Impact of COVID-19 and New Tax Regime on the Life Insurance Sector
The objective of extension in the grace period is to let the policyholders pay all the due premiums within the said period so that the policy coverage remains in force. Adding to this, the regulator has also provided the policyholders with an option to pay the premiums online. This initiative allows people to stay at home and ensures safety during the COVID-19 pandemic spread abiding the lockdown constraints.
For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in
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