New Delhi, Feb. 19 -- Insurance regulator IRDAI has allowed one time mandate for blocking the amount towards premium through unified payments interface (UPI mandate) for issuance of life and health insurance policies.

This facility -- known as Bima-ASBA (applications supported by blocked amount) -- transfer of money from a prospective policyholder to the insurer will take place only after the insurance policy is issued.

The new directive issued by Insurance Regulatory and Development Authority of India issued via a circular dated Feb 18 is made in reference to a master circular on protection of policyholders' interests dated Sept 5, 2024, for life insurance policies and health insurance policies where it was conveyed that the premium is...