Central Government issues Notifications allowing Health and Motor (Third Party) insurance policyholders to make premium payments till May 15th which are due for renewal during COVID-19 lockdown

To ensure a continued cover and hassle-free claims payment during the grace period

With a view to mitigate hardship to the policyholders whose Health and Motor (Third Party) insurance policies are due for renewal during COVID-19 lockdown, the Central Government issued Notifications allowing such policyholders to make premium payments till May 15^th. This will ensure a continued cover and hassle-free claims payment during the grace period. The notification 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 25^th March, 2020 up to the 3^rd 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 15^th 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.

Insurance renewal relief preserves statutory motor third-party and health cover by extending premium payment deadline during lockdown. Central Government notification permits policyholders whose health or motor third-party insurance renewals fell due between 25 March 2020 and 3 May 2020 and who cannot pay on time because of COVID-19 to make renewal premium payments on or before 15 May 2020, thereby preserving continuity of statutory motor vehicle third-party insurance cover from the original renewal date and ensuring payment of valid claims arising during the grace period.