LIC grace period extended by IRDAI: COVID-19

LIC Policy Grace period extended up to 31st May:

IRDAI extended the grace period for LIC renewal premium payment of Life Insurance policies due during the month of March, to May 31 due to the increased shutdown to combat the spread of the coronavirus.

Earlier Irdai had announced an additional 30-day grace period for LIC policies in which payments were due during the months of March and April.

This was done to help the policyholders in the wake of the COVID-19 worldwide epidemic, the Insurance Regulatory and Development Authority of India (Irdai) said.

Now that the lockdown has been extended until May 17, 2020, the regulator has allowed an extended grace period for LIC policy, until May 31 for all life insurance policies that are at its best in March keeping in mind the difficulties some policyholders face to update policies on time.

The press release of IRDAI read:

ADDITIONAL GRACE PERIOD FOR LIFE INSURANCE POLICIES

Ref: IRDAI/Life/Grace Period 9th May 2020 PRESS RELEASE ADDITIONAL GRACE PERIOD FOR LIFE INSURANCE POLICIES   Taking into account the unprecedented lock down situation as a result of Global Pandemic Covid19, to provide relief to the life insurance policyholders, IRDAI had announced on 23rd March 2020 and 4th April 2020, additional Grace Period of 30 days for the policies where premium fell due in the months of March 2020 and April 2020. As the lockdown has been further extended up to 17th May 2020, keeping in view the difficulty faced by some policyholders to renew the policies in time, the Authority has now allowed extended grace period up to 31st May 2020 for all policies where the premium was due in the month of March 2020. All policy holders are requested to note that the objective of the Grace Period allowed is to pay all the premiums due within that period so as to keep the policy coverage in force. Life insurance companies are equipped to provide the facility to pay premiums online. The policyholders are encouraged to make use of this provision so as to minimize their personal visits to the offices of the insurers. Stay home – Stay Safe and Stay Protected.