IRDAI relaxes rules

The Insurance Regulatory and Development Authority of India (IRDAI) has asked insurance companies to allow additional 30 days of grace period for payment of renewal premium for life insurance policies if desired by the policyholders. This was stated in a press release issued by the regulator.

In case of health insurance policies, the insurers may condone delay in renewal up to 30 days without deeming such condonation as a break in policy, says the release. In a separate press release, the regulator has relaxed submission of final reinsurance programmes and synopsis of catastrophe modelling report for the financial year 2020-21 in the interest of operation of insurers. As per extant regulatory provisions, insurers have to file their Board approved final reinsurance programme by 30 April 2020 along with a synopsis of their catastrophe modelling report. In view of COVID-19 pandemic, it may be difficult for some insurers to adhere with stipulated timelines. Thus, the regulator has stated that insurers may comply with the regulatory provisions on or before 31 May 2020