In a relief to life insurance policyholders amid coronavirus lockdown, the Insurance Regulatory and Development Authority of India (IRDAI) has given 30 additional days to pay the life insurance premium. Additional grade period has been provided to the policyholders whose life insurance policies' premiums fall due in March and April 2020, IRDAI said in a circular on Saturday. In addition to the 30-day grace period given on March 23, the policyholders who are liable to pay in March now have a total of 60 days.
In another decision, the insurance regulator has also given relief to Unit Linked Insurance Plan (ULIP) holders amid steep fall in stock markets. The ULIP holders whose policy would mature in March, April or May could now postpone the maturity date for up to 5 years.
"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," IRDAI added.
Also read: Coronavirus in India: 8 crore women beneficiaries receive cash benefits
The life insurance providers were also asked by the IRDAI to explain to policyholders about the expected risks of the sustained fluctuation in the fund value. "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," IRDAI also said.
Meanwhile, on Friday, Prime Minister Narendra Modi urged people to light lamps or candles at 9 pm on April 5 to show their solidarity in the fight against coronavirus. "This Sunday, on April 5, we must all, together, challenge the darkness spread by the corona crisis, introducing it to the power of light. On this date, we must awaken the superpower of 130 crore Indians. We must take the super resolve of 130 crore Indians to even greater heights," Modi said.
INDIA CORONAVIRUS TRACKER: BusinessToday.In brings you a daily tracker as coronavirus cases continue to spread. Here is the state-wise data on total cases, fatalities and recoveries in one comprehensive graphic.