Page 34 - Insurance Times April 2020

policyholder specifically seeks the physical form of the (Pravin Kutumbe)
policy contract, the same shall be provided by the Member (F&I)
insurer.
3. Every insurer offering Arogya Sanjevani Policy shall Norms on collection of Health Insurance
provide a certificate of insurance to the policyholder Premium during COVID-19 crisis
indicating the availability of health insuarnce
coverage.The certificate shall have a reference to access 1. Reference is drawn to Clause C (1.1) of “Guidelines on
detailed terms and conditions of the policy contract. Filing of Minor Modifications in the approved Individual
Insurance Products offered by General and Stand Alone
4. This has the approval of the competent authority. Health Insurers on Certification Basis” (Ref No: IRDA/
HLT/CIR/MISC/151/09/2019 dated 20th September,2019)
D V S Ramesh, whereby Insurers are allowed to add premium payment
General Manager(Health) options (frequency / payment of premiums in
instalment) in individual health insurance products on
Prudent Management of financial certification basis.
resources of insurers in the context of 2. In view of prevailing conditions owing to COVID-19
outbreak, considering the need for easing the payment
Covid-19 pandemic of health insurance premiums, all the insurers are
1. This has reference to IRDAI Circular no. IRDA/F&A/CIR/ allowed to collect health insurance premiums in
MISC/089/04/2020dated 13th April, 2020 on the said instalments as specified in clause C (1.1) of above
subject. referred guidelines, as they may deem appropriate for
any specific product(s).
2. As part of measures to prudently manage their financial 3. However, insurers shall comply with all the applicable
resources, all insurers have been directed to align conditions in general of the above referred guidelines
dividend pay-out for the FY 2019-20 so as to be in and in particular with clause 4.1 of the above referred
conformity with their strategiesto ensure that they have guidelines. The same is reiterated here for ready
adequate capital and resources available with them to reference:
ensure protection of the interests of the policyholders. “3.1Addition of premium payment modes (frequencies)
under Clause 1.1 above:
3. In view of the emerging market conditions, and to 3.1.1 There shall be no change in basic premium table
conserve capital with the insurance companies in the and charging structure under the approved individual
interests of the policyholders and of the economy at product to which new premium payment mode
large,insurers are urged to take a conscious call to (frequency) is being added. Factors applicable, if any,
refrain from dividend pay-outs from profits pertaining to allow the change of premium payment mode
to the financial year ending 31st March 2020, till further (frequencies) shall be fair and reasonable.
instructions. This position shall be reassessed by the 3.1.2. The premium mode (frequency) proposed to be
Authority based on financial results of insurers for the added may be monthly, quarterly or half yearly and the
quarter ending 30th September, 2020. resulting premium amounts under each mode
(frequency) are consistent with premium amounts
4. The necessary relaxations on recognition of ‘approved under other premium modes (frequencies) of the
investments’ under Regulation 3 (a) (4) and 3 (a) (5) of underlying product.
the IRDAI (Investment) Regulations, 2016, arising out 3.1.3. The basis for arriving at the factors, if any, to be
of the above will be separately considered. applied on the premium payment modes / frequencies
proposed to be added or removed is disclosed in the
5. It is further directed that this circular along with the above prescribed Form (FORM-IRDAI-FNU-HIP).”
referred circular dated13thApril, 2020be placed before
the Board of the insurers at the ensuing meeting under 4. The premium instalment facility may be offered either
intimation to the Authority. as a permanent feature by duly complying with the

34 The Insurance Times, April 2020