Home >Industry >Banking >Rs500, Rs1000 note can’t be used for insurance payments: IRDAI

New Delhi: Refuting reports that individuals can deposit their insurance renewal premium in now defunct Rs500 and Rs1,000 currency notes, IRDAI on Tuesday clarified that it has only granted extension of grace period by up to 30 days.

IRDAI said it has been brought to its notice regarding a news item floating in the press that the pension regulator has instructed insurers to accept old Rs500 and Rs1,000 notes for depositing insurance premium. “The circular does not mention acceptance of the said old notes and it merely extends the grace period of the policies issued by life insurers," Insurance Regulatory and Development Authority of India (IRDAI) said in a circular.

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Policyholders are allowed a grace period of 30 days to submit their insurance renewal premium, however, in this case it has been extended by similar days. Earlier on 25 November, IRDAI had said that keeping in view the inconvenience to policyholders, it allows extension of grace period by an additional 30 days for all policies issued by life insurers the premium of which fell/falls due on or after 8 November 2016 till 31 December 2016.

IRDAI said the special one-off dispensation was given so that “policyholders do not suffer" from non-payment of due premiums due to recent cash crunch.

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