Relief for common man! You can pay health insurance premium in instalments now

Giving a major relief to common man, the Insurance Regulatory and Development Authority (IRDAI) has allowed them to pay health insurance premium in instalments. In a circular, IRDAI said that customers can now pay premium on health insurance policies in monthly, quarterly or half-yearly instalments. 

“In view of prevailing conditions owing 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,” the Insurance Regulatory and Development Authority said in the circular. 

The premium instalment facility may be offered either as a permanent feature by duly complying with the norms specified in the above referred guidelines or may be offered as a temporary relief for a period of 12 months for one policy year, the insurance regulator said. This can be applicable for all health insurance policies that are due for renewal in FY21.

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“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 circular added. 

The IRDAI had recently warned the general public against cyber insurance frauds. IRDAI urged people to not to fall for fraudulent insurance offers particularly when buying insurance policies online.

As most people are stuck at home during the lockdown, they are buying insurance plans online, an opportunity being used by the fraudsters.

"There are occasional reports of fraudsters offering insurance with unusually low premium from fake entities through online/digital mode. The public are hereby cautioned not to fall prey to such offers,” the statement from IRDAI said.

It is also important for the customers to verify the insurance agents before agreeing to buy a policy. The list of insurance agents appointed by individual insurers can be verified from the respective insurers.

"The customer should take due care and verify the genuineness of the website and the genuineness of the insurer, intermediary or agent before making any online payment," IRDAI said.