A union ministry of Finance on Thursday notified that the payments for the renewal of health and motor vehicle insurance policies, due during the lockdown period between March 25 and May 3, can be made on or before May 15.
“With a view to mitigate hardship to policyholders whose health & motor (third party) insurance policies are due for renewal during the coronavirus disease (Covid-19) lockdown, the government has issued a notification allowing policyholders to make payments on or before May 15 towards the renewal of their policies,” Finance Minister Nirmala Sitharaman’s office tweeted on Thursday.
The decision is taken to ensure continuity of policies and hassle-free claims payments to policyholders during the grace period, it said.
“The policyholders whose motor vehicle third party insurance policies fall due for renewal during the period on and from March 25 to May 3 and who are unable to make payment of their renewal premium on time in view of the prevailing situation in the country as a result of Covid-19, are allowed to make such payment for renewal of policies to their insurers on or before the May 15 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal so that any valid claim triggered during the grace period can be paid,” said a notification issued by the department of financial services (DFS), an arm of the finance ministry.
A similar amendment has been made in the laws related to the renewal of health policies, it said. The decision has been taken in the public interest considering the prevailing situation in the country caused due to Covid-19 and consequent extension of lockdown period by further 19 days starting on and from April 15, it added.
