Insurance policy holders facing financial difficulties due to the Covid-19 pandemic will now get a relief after the industry regulator granted them a grace period for payment and renewal of premiums.
The Insurance Regulatory Authority (IRA) said insurers will be required to give their clients concessions such as deferral of payments or renewal of premiums, including considering offering holidays and the option of staggered payments.
Insurance Regulator Authority
“Insurers should avail policy holders a three-month grace period. The grace period may be over and above any contractual premium holidays already in place for existing policies,” IRA chief executive Godfrey Kiptum said in a statement Tuesday.
In the life insurance segment, policy contracts have specific commencement dates and maturities and customers have to pay, failure to which they lose the policy in the first three years or get refunded a small portion of the premiums they have been paying, also known as a surrender value.
