Call for Urgent Insurance Reforms to Protect Policyholders

During the Zero Hour session in the Rajya Sabha, NCP-SCP member Fauzia Khan called on the finance minister to push the Insurance Regulatory and Development Authority of India (IRDAI) to ease stringent policy lapse rules in the insurance sector.

Khan highlighted a growing financial crisis impacting millions of middle-class families, largely due to restrictive rules governing life and health insurance policies. She emphasized how a mere 30-day grace period for premium payments could lead to total policy forfeiture, adversely affecting policyholders facing temporary financial setbacks.

To alleviate this burden, Khan proposed extending the grace period to 90 days, introducing proportional late fees rather than outright policy cancellations, and allowing automatic policy revival without fresh medical checks within 180 days. She appealed for these changes to help families in distress seeking financial security through insurance.