Health Insurance Premium Can be Paid In Installments

Health insurance premium can be paid
The insurance regulator has issued a circular in this regard on 21 April. According to this, in view of the corona epidemic, it may be easier for policyholders to pay premiums in installments rather than lumpsum.

Insurance regulator IRDA has taken a big decision in the interest of customers. It has approved the health insurance companies that they can take renewal premium in installments from their policyholders. This will be applicable in the case of policies whose premium is payable from now until 31 March 2021.

Health Insurance Premium Can be Paid In Installments

In September, IRDA allowed companies offering health insurance to provide customers the option of paying premiums in installments. These installments can be taken monthly, quarterly or half-yearly.

However, in this case also, how to pay the installment, it has to be decided by the customers while purchasing the policy. Later it cannot be changed easily. Since this option has been given only last year. Therefore, most of the existing health insurance policies are still in annual premium payment mode.

Health insurance premium can be paid in installments

The insurance regulator has issued a circular in this regard on 21 April. According to this, in view of the corona epidemic, it may be easier for policyholders to pay premiums in installments rather than lumpsum.

In this way, you can now get the option to pay health insurance premium on monthly, quarterly and half yearly basis. The option to pay premium will also be open on an annual basis.Let us understand this with an example.

Suppose the date of renewal of your policy is 3 May 2020 and its annual premium is Rs 36,000. In such a situation, you can ask your insurance company to change the frequency of premium payment. On taking the monthly option of frequency, you have to pay Rs 3,000 every month during the next 12 months.

However, the option of monthly or other frequency will be available for a period of one year only. After this the normal frequency will be restored. However, the duration of the installments will also depend on whether the policy holder takes the policy for one year or it is purchased forever.

Amit Chhabra, head-health insurance, PolicyBazaar.com, said that in view of the prevailing conditions, the regulator has asked for an option to pay premiums in installments for the health insurance product. Premium installation facility may be given permanently or for a minimum period of 12 months. It depends on the insurance company.

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