Good News! Pay Your Health Insurance Premium in Instalments during Covid-19 Lockdown: IRDAI

The country’s Insurance Regulatory & Development Authority (IRDAI) has allowed payment of premium on health insurance policies in monthly, quarterly or half-yearly instalments. The move has been made so as to ease the financial burden on policyholders during the Covid-19 pandemic.

IRDAI said in a circular, “In view of prevailing conditions due to the Covid-19 outbreak, considering the need for easing the payment of health insurance premiums, all the insurers are allowed to collect health insurance premiums in instalments.”

Adding more to the good news, the insurance regulator said, “The premium instalment facility can be offered either as a permanent feature by duly complying with the norms mentioned in the above referred guidelines or may also be offered as a temporary relief for 12 months period for one policy year. This may be applicable for all health insurance policies which are due for renewal in FY21.

Irdai further added, “The matter of availability of facility of payment of premiums in instalments and the conditions thereon shall be suitably published in the website of every insurance company.”

The IRDAI had earlier also announced that all health & motor insurance policies that fall due for renewal amid the Covid-19 lockdown can renew policies on or before May 15 for ensuring continuity of such covers. Adding more to it, medical insurers have already been directed by the regulators to notify hospitals of their decisions to make claim settlement within 2 hours of the claim.

It has mentioned earlier, "Decision on authorization for cashless treatment shall be communicated to the network provider (hospital) within two hours from the time of receipt of authorization request & last necessary requirement from the hospital either to the insurer or to the TPA whichever is earlier."