Following withdrawal of legal tender character of old Rs. 500 and Rs. 1,000 denomination notes from November 9, government has put restrictions on cash withdrawals from banks and ATMs. People are facing cash crunch, so IRDAI has asked life insurance companies to provide an additional window of 30 days to policy holders for paying premium.
Amid the cash crunch, Life Insurance Council had approached the Insurance Regulatory and Development Authority of India (IRDAI) to extend grace period by an additional 30 days for all the policies falling due between November 8 and December 31, 2016.
After examining the representation and keeping in view the inconvenience to policyholders, IRDAI has allowed the extension of grace period by an additional 30 days for all the policies issued by life insurers the premium/s of which fell/falls due on or after November 8, 2016 till December 31, 2016.
The regulator said that above is the special one-off dispensation given so that policyholders do not suffer from non-payment of due premiums due to recent cash crunch. All life insurers are advised to comply.