To prevent the spread of Covid-19,
Government of India has initiated various measures. Several States have
enforced lock-down in some areas. This may result in some
disruption in the operations of insurance companies and other entities
connected with insurance industry. To ensure proper service to policyholders
and customers, all the insurers have been asked to maintain continuity of
business operations through possible alternate modes including telephonic and
digital contact. All insurance companies have been asked to display on their
websites, the information on functioning of their offices and the alternate
arrangements made for premium payments, renewal, settlement of claims and
lodging of other service requests.
In the interest of smooth operation of
affairs of insurance industry, IRDAI has permitted following relaxations:
In case of life insurance policies, there is
a grace period for payment of renewal premiums. Insurers have been asked to
enhance the grace period by additional 30 days if desired by the policyholders.
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. However, insurers are requested to contact the
policyholders well in advance so as not to have a discontinuance in coverage.
In case of Board meetings of insurers, the
meetings due till 30thJune, 2020 may be held through video –
conferencing or other audio-visual means in accordance with Rule 3 of the
Companies (Meetings of Boards and its Powers) Rules, 2014 as amended on 19th
In case of submission of monthly returns for
the month of March, 2020 by insurers and insurance intermediaries, additional
time of 15 days will be allowed. Similarly, in case of quarterly returns, an
additional period upto one month will be permitted.
IRDAI appeals to all the insurers,
insurance intermediaries and distribution channels to be sensitive to the needs
of the policyholders in these trying times. IRDAI also appeals to all the
policyholders to cooperate.
Date: 23rd March, 2020