The Insurance Regulatory and Development Authority (IRDA) has modified its linked and non-linked insurance products regulations. Now IRDA has allowed insurers to collect advance premium.
Insurers are allowed to collect advance premium within the same financial year for the premium due in that financial year. However, if the advance premium is collected for the next financial year, then insurers can collect advance premium 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. And also commission will be paid after adjustment of premium on due date.
Earlier, the IRDA had said that premium due may be collected 30 days before the due date. However, in the monthly premium payment mode, insurers could accept three months premiums in advance only on the date of commencement of the policy
vinay mohanty
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