Hyderabad:
After being allowed a moratorium till May 15 for the payment of motor and health insurance renewal premium, in view of the Caronaviris Pandemic, now policyholders can pay their health insurance premium in installments.
On Tuesday, the insurance regulator IRDAI has allowed general insurance and stand alone health insurers to receive the health insurance premiums in instalments .
In view of prevailing conditions owing to COVID-19 outbreak, considering the need for easing the payment of health insurance premiums, all the insurers are allowed to collect health insurance premiums in installments, said IRDA in a circular on Tuesday.
Anand Roy, Managing Director, Star Health and Allied Insurance.“This is a positive introduction by the IRDAI and will enhance insurance penetration in India. Payment of health insurance premiums will act as an incentive and create an inclination towards purchasing insurance policies as well as renewal of policies . We already have some products where we allow instalment payments for the purchase of the policies. Considering the latest move, it will allow us to expose more of our best selling products to the instalment payments mode.”
The premium instalment facility may be offered either as a permanent feature or may be offered as a temporary relief for a period of twelve months (one policy year) in respect of all the health insurance policies that are due for renewal up to 31st March, 2021, said IRDAI.
The IRDAI mentions the following conditions to be complied by the insurers while allowing the installment in payment of health insurance premiums-
-There will l be no change in basic premium table and charging structure under the approved individual product to which new premium payment mode (frequency) is being added. Factors applicable, if any, to allow the change of premium payment mode (frequencies) shall be fair and reasonable,
– The premium mode (frequency) proposed to be added may be monthly, quarterly or half yearly and the resulting premium amounts under each mode (frequency) are consistent with premium amounts under other premium modes (frequencies) of the underlying product,
-The matter of availability of facility of payment of premiums in installments and the conditions thereon shall be suitably published in the website of every insurance company.
– Where the facility of payment of premiums in instalments is offered in respect of any product / products the same shall be offered to all policyholders without any discrimination and policyholders shall be also notified of the applicable conditions. -Specific consent of having agreed to the conditions shall be obtained from the policyholders.
-The details of products in respect of which the Installments facility is made available shall be filed with the IRDAI within referred guidelines and within seven days from the date of offering the facility. There will no change to the UIN allotted to the product,
-The names of the products that are offered the facility of payment of premiums in instalments shall be published in the websites of insurers for the information of policyholders.