People seeking health insurance will have option to pay premium on monthly, quarterly, half-yearly basis: IRDAI

The Insurance Regulatory and Development Authority of India (IRDAI) in its latest circular has said that people seeking health insurance will soon have the option to pay premium on monthly, quarterly and half-yearly basis in addition to the current practice of annual payments. Irdai, in a communication to general and standalone health insurers, has also added that payment in installments should not lead to change in basic premium and charging structure under the approved individual product.

The change in frequency of premium payment has been permitted through circular permitting insurers to go in for minor modifications in policies filed by them. This move is expected to give more flexibility to insurance companies to offer individual health insurance products, besides deepening the market.