IRDAI ban repayment of insurance loan by credit card

IRDAI has decided to stop the facility of re-payment of loans taken against Life Insurance policies through credit cards.

In a circular dated May 4, 2023, the insurance regulator advised all Life Insurers to stop accepting credit cards as a mode of re-payment of loans granted against insurance policies.

“The Authority has decided to stop the facility of re-payment of loans taken against the insurance policy using credit card as a mode of payment. Accordingly, all Life Insurers are advised to stop the acceptance of credit card as a mode of re-payment of loans granted against insurance policies with immediate effect,” the IRDAI said in the circular.