The renewal dates of health and motor insurance policies falling during the nationwide lockdown period has been extended till May 15 by the Ministry of Finance to ensure continuity. This extension is for policies that are due for renewal between March 25 and May 3, aimed at mitigating the hardship faced by policyholders during the lockdown, which was extended on Tuesday by 19 days.
The Finance Ministry said on Twitter that those holding health and third-party motor insurance policies due for renewal during the lockdown will be allowed to make payments in this regard by May 15.
The finance ministry in two separate notifications said policyholders 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 policyholders 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 the 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 a similar extension will be affected for the life insurance renewal policy also through a separate notification.
In case of health insurance, if a policyholder 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.
Driving a vehicle without valid third party insurance is a crime and can attract fine under the Motor Vehicles (Amendment) Act.
In case of damage to a third party (somebody else”s car or property) or death of a third party (person) during the lapse period, the person would be liable to pay entire compensation on his/her own.