New Delhi: The Insurance Regulatory and Development Authority of India (IRDAI) has decided to stop the facility of re-payment of loans taken against Life Insurance policies through credit cards.
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The IRDAI is a statutory body under the jurisdiction of Ministry of Finance, Government of India and is tasked with regulating and licensing the insurance and re-insurance industries in India.
In a circular dated 4 May 2023, the insurance regulator advised all Life Insurers to stop accepting credit cards as a mode of re-payment of loans granted against insurance policies.
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“The Authority has decided to stop the facility of re-payment of loans taken against the insurance policy using credit card as a mode of payment. Accordingly, all Life Insurers are advised to stop the acceptance of credit card as a mode of re-payment of loans granted against insurance policies with immediate effect,” the IRDAI said in the circular.
