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Life insurers may modify group credit life master policies to align coverage with the revised loan repayment schedule for members who avail the Reserve Bank of India moratorium. Life insurers collect additional premium to cover the extended period. The modification applies only to members who select the moratorium. The coverage extension matches the revised loan repayment schedule. The pricing for the extended period uses the same terms as the original cover. Original member enrolment forms, authorizations, and certificates of insurance remain valid. Insurers remit the difference in stamp duty and place an endorsement on the master policy document. The inspection department may verify compliance with these instructions.
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Ref: IRDAI/Life/Cir/Misc/147/2020
9th July, 2020.
To All Insurers
Sub: Group Credit Life Schemes – Modifications to align the coverage with the moratorium announced by Reserve Bank of India.
This has reference to representations received from Life Insurers to permit them to make certain modifications in the Group Credit Life Master Policies issued by them so as to align the cover available under such schemes with the revised loan repayment schedule in respect of members who have availed the facility of moratorium announced by RBI in the wake of the COVID-19 pandemic. The matter has been examined and the following instructions are issued
Life Insurers offering group credit life insurance schemes, where under, the members have availed moratorium on payment of EMIs are allowed to suitably modify the term and sum assured under such schemes, against collection of additional premium as may be required, in respect of such members, so that they may continue to be covered as per the revised loan repayment schedule.
The permission to make such modifications shall be subject to the following conditions:
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Member (Life)
