Paying Health Insurance Premium in Instalments is Now Possible

The outbreak of COVID-19 outbreak has impacted businesses across all the industries. In a bid to provide some relief to policyholders during this pandemic where everyone is facing liquidity crunch, the Insurance Regulatory and Development and Authority of India (IRDAI) has issues guidelines to all the standalone health insurance companies and general insurance companies to provide option to the policyholders to pay their medical insurance premiums in instalments.

Bajaj Allianz General Insurance Co. Ltd, Bharti AXA General Insurance Co. Ltd are a few insurance companies who have now extended the premium payment option for their customers.

For example, Bajaj Allianz Health Guard health insurance plan provides premium instalment facility for both individual and family floater plans. The proposer can pay the premium instalments on monthly, quarterly, half-yearly and yearly basis.

How does it work?

If a customer opts to pay the premium in instalment, then the receipt of the down-payment received while purchasing the policy issuance will be sent to the customer. As the instalments are paid, the policyholder will get all the receipts for subsequent instalments.

If you are not able to pay the premium then a 15 days grace period is also provided. If the policyholder pays within the grace period, he/she will be able to avail the accrued benefits with respect to cumulative bonus accrued and waiting periods.

Payment of Claims in Monthly Instalments Premium

In case the insured person chooses to pay the premium on monthly basis for your health insurance policy and have paid 3 or 4 instalments, then you insurer is liable to accept your claims in case there is any medical emergency. However, you will need to pay the balance premium in one go or the insurance provider will deduct it from the payable claim amount.

The premium paid on installment basis will not impact the claim settlement process provided you pau the balance premium upfront or the insurer will deduct it from the claim amount.