Govt eases renewal dates for health, motor policies

Payments for the renewal of health and motor vehicle insurance policies, due in the lockdown period of April 15 to May 3, can now be paid on or before May 15, 2020, a finance ministry notification said.

Payments for the renewal of health and motor vehicle insurance policies, due in the lockdown period of April 15 to May 3, can now be paid on or before May 15, 2020, a finance ministry notification said.

This decision is taken to ensure continuity of policies and hassle-free claims payments to policyholders during the grace period, it said. (Image for representation purpose)

“With a view to mitigate hardship to policyholders whose health & motor (third party) insurance policies are due for renewal during lockdown, the government has issued notification allowing policyholders to make payments on or before 15.05.2020 towards renewal of their policies,” finance minister Nirmala Sitharaman’s office tweeted on Thursday.

This decision is taken to ensure continuity of policies and hassle-free claims payments to policyholders during the grace period, it said.

“The policy holders whose motor vehicle third party insurance policies fall due for renewal during the period on and from March 25, 2020 up to May 3, 2020 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 coronavirus disease, are allowed to make such payment for renewal of policies to their insurers on or before May 15, 2020 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 renewal of health policies, it said.