Amidst the COVID-19 pandemic and following nationwide lockdown, the Central Government while giving various relaxations, has now also extended the renewal of Health insurance policy and Motor vehicle insurance policy.
The Central Government vide its notification dated April 01, 2020, has stated that all policy holders whose third party motor insurance policy is due renewal during the period of March 25, 2020 upto April 14, 2020 i.e. the lockdown period and who are unable to make the payment of their renewal premium on time due to the prevailing COVID-19 are allowed to make the payment for their motor insurance on or before April 21, 2020.
The relevant extract from the notification is reproduced herein for ready reference:
“The policy holders whose motor vehicle third party insurance policies fall due for renewal during the period on and from the 25th March, 2020 up to the 14th April, 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 Corona Virus disease (COVID-19), are allowed to make such payment for renewal of policies to their insurers on or before the 21st April, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal.”.
A similar relaxation has also been given to all health insurance policy holders whose are due to make renewal payment between March 25, 2020 upto April 14, 2020.
In view of the above, the policy shall be deemed renewed till April 21, 2020. However, post April 21, 2020, it shall be the responsibility of the policy holders to have the policies renewed. As the Centre has extended the nationwide lockdown till May 03, 2020 it is expected that the IRDAI might issue fresh guidelines and timelines for renewal of the policies.
Note: We shall keep you updated in the event of any further development in the aforesaid matter.