Ref: IRDAI/Life/Cir/Misc/078/04/2020 4thApril 2020
Sub: Global Pandemic Covid19 relatedInstructions to Life Insurers
Thishas reference to the representations received from Life Insurers and the LifeInsurance Council expressing various operational constraints and difficultiesbeing faced by policyholders due to nationwide three week lockdown and socialdistancing norms. Therefore further to Circular Ref:IRDA/Life/Cir/Misc/072/03/2020 dated 23rd March 2020, the followinginstructions are issued.
1. AdditionalGrace Period
Forlife insurance policies whose premiums fall due in March and April 2020: 30days
2. SettlementOptions for maturity payout of Unit Linked Policies
Where unit linked policies mature and fundvalue is to be paid in lumpsum, Life Insurers may offer settlement options inaccordance with Regulation 25 of IRDA (Linked Insurance Products) Regulations,2013. This onetime option is regardless of whether such option exists or not inthe specific product. The Life Insurers however have to exercise all due careand diligence to explain clearly the possible downside risk of continuedfluctuation of fund value based on daily NAV and clear consent has to beobtained from the policyholder. This is allowed for unit linked policiesmaturing up to 31st May 2020.
This is issued with the approval of theCompetent Authority.