The Finance Ministry extended the renewal dates of health and motor insurance policies falling during the nationwide lockdown period till May 15 to ensure continuity. This extension is for policies that are due for renewal between March 25 and May 3.
“With a view to mitigate hardship to policyholders whose health & motor (third party) insurance policies are due for renewal during COVID-19 lockdown, Govt. has issued notification allowing policyholders to make payments on or before 15.05.2020 towards renewal of their policies,” the finance ministry said in a tweet.
The finance ministry in two separate notifications said policy holders whose motor insurance third party insurance or health insurance policies that are due in the lockdown period from March 25 up to May 3 and who are unable to make payment of their renewal premium on time due to the lockdown are allowed to make such payments till May 15.
The notifications assured policy holders of continuity of motor insurance third party cover as well as health insurance cover and assured that any valid claim during the period will be paid.
These notifications have been necessitated as the lockdown period was extended by Prime Minister Narendra Modi till May 3 to check the spread of COVID-19. The extension was done at the end of 21-day lockdown on April 14.
As per the first phase of lockdown, the renewal period was extended till April 21.
It is expected that similar extension will be effected for life insurance renewal policy also through a separate notification.
In case of health insurance, if a policy holder fails to pay the premium by the renewal date he/she gets a certain grace period to pay it. The policy can be renewed by paying the renewal premium during this grace period.
However, during the grace period, the policyholder is not covered and cannot file any claim for any medical or health event/accident/treatment taken during the grace period..Read more>>