The Insurance Regulatory and Development Authority of India vide its circular dated 10th July 2020 has permitted life insurers to make certain modifications in the Group Credit Life Master Policies issued by them so as to align the cover available under such schemes with the revised loan repayment schedule in respect of members who have availed the facility of moratorium announced by RBI in the wake of the COVID-19 pandemic.
The modification shall be limited to the extent required to ensure that the coverage under the scheme matches the revised loan repayment schedule. The coverage for the extended period will have to be priced on the same terms as the original cover.
Life Insurers offering group credit life insurance schemes, where under, the members have availed moratorium on payment of EMIs are allowed to suitably modify the term and sum assured under such schemes, against the collection of additional premium as may be required, in respect of such members, so that they may continue to be covered as per the revised loan repayment schedule.
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