Health Insurance Premium Can Be Paid In Installments For 12 Months; 20% Rise In Sale Of Heath Insurance Witnessed

On account of the Coronavirus outbreak, the payment of health insurance premiums has been allowed to be done in installments temporarily. 

The Insurance Regulatory and Development Authority of India (IRDAI) has allowed this keeping in mind the dire straits the country is in due to the lockdown imposed. 

Industry estimates have suggested that the sales of health insurance went up by up to 20 percent in the last two months, which has been the time for which the lockdown has been imposed and the deadly coronavirus has been on the rise.

To find out more about this newest development, read on!

IRDAI Allows The Payment of Health Cover Premium in Installments

The General Manager issued a statement today, wherein he said that the IRDAI has announced that it will allow the payment of health insurance premiums in installments. As per reports, the premium installment facility may be offered in two forms, either as a permanent feature or for 12 months (one policy year), in respect of all health insurance policies that are due for renewal up to March 31, 2021.

DVS Ramesh, General Manager – Health, IRDAI, said, “In view of prevailing conditions due to the outbreak of COVID-19, considering the need for easing of payment of health insurance premium, all insurers are allowed to collect health insurance premium in installments…as they may deem appropriate for any specific product(s).”

All Customers Will Be Eligible

As per reports, the details of the installment facility for health insurance policies should be clearly displayed on the portals of the insurance companies. This should include specific details of the names of the products.

Additionally, IRDAI has loosened the noose around the norms under ”Guidelines on filing of minor modifications in the approved individual insurance products offered by general and standalone health insurers on certification basis.” This will require a gap of 12 months for effecting minor modifications.

The statement also notes that there no discrimination among the policyholders will be allowed and the products with installment facilities should be extended to all the customers. Also, the policyholders who have availed the facility of payment of the premium through installments should give their consent for the payment of premiums.

As per reports, Indians are now buying more health insurance than ever: A massive 20% increase in sale of health insurance has been witnessed ever since the coronavirus outbreak occured.