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With the Covid-19-induced lockdown now being implemented till May 3, the Finance Ministry has extended the grace period during which renewals for both motor vehicle (third party insurance) and health insurance policies could be paid by existing policyholders.
It has now said that renewal premium for such policies (falling due between March 25 and May 3) could be paid till May 15 to ensure continuity of the insurance from the date on which the policy falls due for renewal. This would ensure that any valid claim triggered during the grace period can be paid by the insurer.
“With a view to mitigating hardship to policyholders whose health and motor (third party) insurance policies are due for renewal during the Covid-19 lockdown, the government has issued notification allowing policyholders to make payments on or before May 15, towards renewal of their policies,” tweeted Finance Ministry Nirmala Sitharaman’s office.
It may be recalled that the Finance Ministry had on April 1 said that the renewal dates of health and motor insurance policies which fall in the period from March 25 to April 14 have been extended till April 21, 2020 due to the coronavirus lockdown.
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