Insurers can grant loan moratorium

HYDERABAD: In the wake of the coronavirus pandemic, the

Insurance

Regulatory and

Development Authority of India

(Irdai) has allowed insurers to offer a three-month moratorium for repayment of

term

loans.


Irdai said it had received representations from industry associations seeking a moratorium on repayment of term loans sanctioned by the insurers. The insurance regulator’s move comes on the back of the RBI and the Sebi allowing entities regulated by them a similar moratorium to their debtors. The RBI had issued directions on March 27, providing a moratorium to borrowers of term loans.

Irdai’s dispensation will give relief to those who have availed loans from life insurance companies, particularly LIC.