IRDA allows advance premium collection

India Infoline News Service | Mumbai |

The premiums collected in advance can only be adjusted on the due date of the premium

In order to allow advance premium collection, Insurance Regulatory and Development Authority (IRDA) has revised its linked and non-linked insurance products regulations.
“Collection of advance premium shall be allowed within the same financial year for the premium due in that financial year,” IRDA said to the CEOs of life insurance companies in a circular on Monday.
According to the regulator, if the advance premium is collected for the next financial year, then insurers can collect the same “for a maximum period of three months in advance of the due date of the premium”.
The premiums collected in advance can only be adjusted on the due date of the premium. Further, the commission shall only be paid after adjustment of premium on due date.


 

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