The Insurance Commission on Monday (March 23) ordered all insurers to allow a longer grace period for their policyholders’ premium and contribution payments with due dates falling during the one-month Luzon-wide quarantine being imposed in the hope of stopping the spread of COVID-19.
In an order, Insurance Commissioner Dennis B. Funa said “the gravity of the COVID-19 situation” required insurers “to provide a more lenient policy regarding payments.”
He said easing the payment burden of policyholders during the quarantine period would “ensure continuous coverage for those affected by the outbreak.”
Funa said temporary relief awaited unpaid contributions and premiums, installments and membership fees for all insurance, preneed and health insurance plans from March 15 to April 13.
Insurance, pre-need and health care provider companies may even extend the period covered by this relief to their customers’ pending dues as they deem appropriate.
“All regulated entities are strongly encouraged to extended the grace period,” Funa said.
Even before Funa issued the order, a number of insurers already volunteered to extend payment deadlines.
Also, many life insurers had assured coverage in case policyholders were infected with COVID-19.