Govt extends Health & Auto insurance renewal dates
Published: Apr 16, 2020
By TIOLCORPLAWS News Service
NEW DELHI, APRIL 16, 2020: THE Central government with a view to mitigate the hardship of Health and Auto insurance policyholders whose policies are due for renewal during the lockdown period, has now issued notifications allowing them to make premium payments till May 15. The extension of date come with regard to liquidity issues the policyholders might face in order to prioritise investing in food and hygienic products over renewing their policies. The move is to ensure a continued cover and hassle free claims payments during the grace period.
The notfication says that the policy holders whose health or motor vehicle third party insurance policies fall due for renewal during the period on and from the 25th March, 2020 up to the 3rd May, 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 15th May, 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.
Read the notification here.