IRDAI has said that insurance companies have to ensure that the total amount of premium in any frequency mode is equal to the total premium amount of other frequency modes.
Insurance regulator Irdai has allowed insurance companies to take the premium of health insurance in installment because of the economic situation arising out of the COVID-19 epidemic. In September last year, the Insurance Regulatory and Development Authority of India (Irdai) gave insurance companies premium payment options for personal health insurance products (frequency/ Paid premium in installment) was allowed to add. IRDAI has recently announced a relaxation of rules for insurance companies and policyholders because of the current circumstances. IRDAI has issued a circular saying, "Given the situations arising out of the COVID-19 epidemic and considering the need to simplify the rule of payment of health insurance premiums, all insurance companies are allowed to collect the premiums of health insurance in installment... The product for which they feel right to do so.''
The regulator has also clarified that there will be no change in the basic premium table and charging structure. The frequency of premium payments may be monthly, quarterly, or half-yearly. At the same time, Irdai has announced that insurance firms have to assure that the entire outlay of premium in any frequency mode is equivalent to the whole premium amount of another frequency mode.
IRDAI has said that the facility of payment of premium in installment can be made permanent with compliance with the rules or can be applied for 12 months (one policy year) as temporary relief. The regulator has said that these arrangements can be made for policies with the date of renewal up to 31st March 2021.
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