Life insurance policy: Grace period for premium payment extended further

Irdai, the insurance regulatory body, on Sunday said it has decided to further extended the grace period for renewal of life insurance policies whose premium was due in March till May 31 in wake of the extension of lockdown to fight spread of coronavirus. “On a review of the recent situation of lockdown resulting from global pandemic of Covid-19 across the country and representations received, it has been decided that, for all life insurance policies where the premium falls due in the month of March 2020, the grace period shall be allowed till 31st May 2020”, Irdai said in a statement. Earlier, on March 23 and April 4, the Insurance Regulatory and Development Authority had announced additional grace period of 30 days for policies where premium fell due in the months of March and April. This was done to provide relief to life insurance policyholders in wake of the unprecedented lockdown situation as a result of coronavirus pandemic, the insurance had said. Now as the lockdown has been further extended up to May 17, 2020, the insurance regulator has extended the grace period up to May 31 for all life insurance policies whose premium was due in March keeping in view the difficulty faced by some policyholders to renew the policies in time. All policyholders are requested to note that the objective of grace period allowed is to pay all the premiums due within that period so as to keep the policy coverage in force, Irdai further said.

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