Withdraw 'automatic extension of period clause' in annual policies: Irdai

The regulator, however, has allowed the existing policies to remain in force which have been issued under the same clause until their expiry

The insurance regulator has directed general insurers to withdraw the automatic extension in period clause, which is offered as an add-on with annual policy covers by general insurers, as this violates the rules of All-India Fire Tariff and is non-compliant with guidelines on product filing procedures for general insurance products. 

Insurance Regulatory and Development Authority of India (Irdai) has observed that some insurers are offering ‘Automatic Extension of Period Clause’ as an add-on to annual policies such as Stan­dard Fire Special Perils, Indu­strial All Risks, Office Package, Home Package, Shop Package. The regulator, however, has allowed the existing policies to remain