Ref: IRDAI/Life/Cir/Misc/078/04/2020
4thApril 2020
Sub: Global Pandemic Covid19 related
Instructions to Life Insurers
This
has reference to the representations received from Life Insurers and the Life
Insurance Council expressing various operational constraints and difficulties
being faced by policyholders due to nationwide three week lockdown and social
distancing norms. Therefore further to Circular Ref:
IRDA/Life/Cir/Misc/072/03/2020 dated 23rd March 2020, the following
instructions are issued.
1. Additional
Grace Period
For
life insurance policies whose premiums fall due in March and April 2020: 30
days
2. Settlement
Options for maturity payout of Unit Linked Policies
Where unit linked policies mature and fund
value is to be paid in lumpsum, Life Insurers may offer settlement options in
accordance with Regulation 25 of IRDA (Linked Insurance Products) Regulations,
2013. This onetime option is regardless of whether such option exists or not in
the specific product. The Life Insurers however have to exercise all due care
and diligence to explain clearly the possible downside risk of continued
fluctuation of fund value based on daily NAV and clear consent has to be
obtained from the policyholder. This is allowed for unit linked policies
maturing up to 31st May 2020.
This is issued with the approval of the
Competent Authority.
(K Ganesh)
Member (Life)