COVID-19: IRDAI allows insurers to collect health insurance premiums in instalments

"In view of prevailing conditions owing to COVID-19 outbreak, considering the need for easing the payment of health insurance premiums, all the insurers are allowed to collect health insurance premiums in instalments as they may deem appropriate for any specific product(s)," IRDAI said in a circular.

New Delhi: IRDAI has allowed insurers to collect health insurance premiums in instalments for products they deem appropriate, in view of the prevailing conditions due to COVID-19 outbreak, which has adversely affected economic activities.

In September last year, the Insurance Regulatory and Development Authority of India (IRDAI) had permitted insurers to add premium payment options (frequency/payment of premiums in instalment) in individual health insurance products on certification basis.

"In view of prevailing conditions owing to COVID-19 outbreak, considering the need for easing the payment of health insurance premiums, all the insurers are allowed to collect health insurance premiums in instalments as they may deem appropriate for any specific product(s)," IRDAI said in a circular.

It further said "there shall be no change" in basic premium table and charging structure under the approved individual product to which new premium payment mode (frequency) is being added.

The premium payment frequency could be monthly, quarterly or half-yearly.

Further, insurers will have to ensure that "the resulting premium amounts under each mode (frequency) are consistent with premium amounts under other premium modes (frequencies) of the underlying product", it added.

IRDAI also said that the premium instalment facility may be offered either as a permanent feature by duly complying with the norms or as a temporary relief for a period of 12 months (one policy year) in respect of all the health insurance policies that are due for renewal up to March 31, 2021.

Towards this, IRDAI has relaxed the norms under 'Guidelines on filing of minor modifications in the approved individual insurance products offered by general and stand alone health insurers on certification basis', that mandate a gap of at least 12 months for effecting minor modifications.

The regulator has also asked insurers to publish on their website the names of the products that are offered the facility of payment of premiums in instalments.

(PTI Report)