IRDAI extends Grace Period and conversion of deposits into Health Insurance Policies in the flood affected State of Kerala and Districts of Karnataka

Sep 07, 2018 | by Avantis RegTech Legal Research Team

The Insurance Regulatory and Development Authority of India (IRDAI) has advised all the General and Health Insurers to grant 60 days grace period in respect of all health insurance policies due for renewal up to September 30, 2018 in the State of Kerala and flood affected districts in the State of Karnataka. While extending the grace period, insurers shall comply with Clause (15) of Chapter I of Guidelines on Standardization in Health Insurance notified vide IRDAI/HLT/REG/CIR/146/07/2016, dated July 29, 2016 for such extended period so as, to protect the continuity of benefits as specified therein. 

Where the policies are due for renewal during the extended grace period, all the insurers are advised to ensure compliance to Regulation 2(i)(e) of IRDAI (Health Insurance) Regulation, 2016. Further, in respect of deposits / premiums collected for issue of health insurance policies during the period of August, 2018, where such deposits/premiums collected could not be converted to policies within the stipulated time as prescribed in Regulation 8 (6) of IRDAI (Protection of Policyholders’ Interests) Regulations, 2017, Insurers are allowed to convert such deposits into policies by September 30, 2018.

Where the premium collected is not converted to policies by September 30, 2018, such premiums shall be refunded by duly complying with Regulation 8(7) of IRDAI (Protection of Policyholders’ Interest) Regulations, 2017.



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