The Insurance Regulatory and Development Authority of India (IRDAI) vide Circular Ref: IRDAI/Life/Grace Period dated 09.05.2020 has ADDITIONAL GRACE PERIOD FOR LIFE INSURANCE POLICIES in the context of Covid-19 pandemic. IRDAI extended grace period up to 31st May 2020 for all policies where LIC premium was due in the month of March 2020.
Key Highlights:
1. First, IRDAI had announced on 23rd March 2020 and 4th April 2020, additional Grace Period of 30 days for the policies where LIC premium fell due in the months of March 2020 and April 2020.
2. Now as lockdown has been further extended up to 17th May 2020, the Authority has allowed extended grace period up to 31st May 2020 for all policies where LIC premium was due in the month of March 2020.
3. Kindly note that: Objective of Grace Period allowed is to pay all the LIC premium due within that period so as to keep the policy coverage in force.
4. Life insurance companies are equipped to provide facility to pay premiums online.
5. The policy holders are encouraged to make use of this provision so as to minimize their personal visit to the offices of the insurers.
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The author of the above article is CS Lalit Rajput, Partner at Xcede Consultech LLP.
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