Life insurance policyholders get additional 30 days to pay premium

New Delhi: In a relief for policyholders, the Insurance Regulatory and Development Authority of India (IRDAI) has given an additional 30-day grace period to pay premium on life insurance policies, whose renewal date fall in March and April, PTI reported.

The decision by the IRDAI comes amid the nationwide lockdown to contain the spread of coronavirus epidemic.

The development comes after IRDAI providing additional time till April 21 for payment of renewal premium in case of health insurance policies and motor third party insurance.

The decision was taken by the regulator after life insurers and Life Insurance Council flagged operational constraints and difficulties being faced by policyholders due to the lockdown.

It further said that life insurers "may offer settlement options" in accordance with relevant regulation where unit-linked policies mature (up to May 31, 2020) and fund value is to be paid in lump sum.

"This one-time option is regardless of whether such option exists or not in the specific product," the IRDAI circular read.