15 Percent Discount On Interest For Loan Against Insurance Policy

May 21, 2020 | Investopaper

The Insurance Board has decided to give 15 percent discount on the interest of the loan disbursed by pledging the insurance policy. The board has stated that 15 percent discount will be given if the interest payable during the lockdown period is paid within one month of the opening of the lockdown. Insurance Board issued a circular on Wednesday instructing the life insurance companies to implement the provision. Currently, life insurance companies have been providing loans to the insured by pledging insurance policies. Beema Samiti has directed to provide 15 percent discount on the interest of the same loan.

The board also freed insurance companies to conduct various trainings through online and virtual media. Now, the companies will be able to conduct online training on agent and staff capacity building during the lockdown period. However, the company will have to submit a report with a ‘soft copy’ to the Beema Samiti.

Similarly, Beema Samiti said that if the insurance company submits a proposal to reduce the management cost, it will give approval on the basis of justification. The board also said that if the company prepares a procedure for selling insurance policies online based on the information technology guidance of the insurer, it will give approval on the basis of justification.


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