Government initiatives have asked insurance companies to be able to give the policyholders time to make payments given the difficulties faced by many during these COVID-19 times. Insurance companies have been asked not to cancel policies and give extensions for premium payments.
Does this mean that the policy will remain active during the period of non-payment? Or
Does it only start being active after you have made your payment?
As per directives to insurance companies by IRDAI, the commencement of the renewed policy shall be the date on which the renewal premium is actually due.
For example; If an existing policy expires on 27th March, 2020 and the renewal premium is paid on 20th April, 2020, the renewal of the policy shall be effective from 28th March, 2020.