Date of renewal of third party motor and health insurance policy extended

The renewal dates of Health and Motor insurance policies which fall in the period from March 25, 2020, to April 14, 2020, have been extended till April 21, 2020, due to the coronavirus lockdown, reads the notification issued by the Ministry of Finance on April 1, 2020.

This means that your existing policies which are falling duefor renewal from March 25, 2020, to April 14, 2020, can be renewed till April21, 2020. One may still voluntarily visit the website of the insurance companyand pay the premium through the online mode.

   

If your current compulsory third-party Motor insurancepolicy is expiring between March 25, 2020, and April 14, 2020, and you are notable to renew your policy because of country-wide lockdown then you can renewsuch motor insurance policy by April 21, 2020.

The two major components of a motor insurance policy are —Third-party Insurance (TP) and Own Damage (OD) Insurance. As per the MotorVehicles Act, 1988, it is mandatory to insure one’s vehicle with a TP insurancecover, the premium of which is set by IRDAI every year.

According to the notification issued by Ministry of Finance,”The policyholders whose motor vehicle third party insurance policies fall duefor renewal during the period on and from the 25th March 2020 up to the 14thApril 2020 and who are unable to make payment of their renewal premium on timein view of the prevailing situation in the country as a result of Corona Virusdisease (COVID-19), are allowed to make such payment to their insurers on orbefore the 21st April 2020 to ensure continuity of the statutory motor vehiclethird party insurance cover from the date on which the policy falls due forrenewal.”

Similarly, if your health insurance policy is expiring andis due for renewal in the period from March 25, 2020, to April 14, 2020, youcan renew your policy by April 21, 2020.

As per the notification,” The policyholders whose healthinsurance policies fall due for renewal during the period on and from the 25thMarch 2020 to the 14th April 2020 and who are unable to make payment of theirrenewal premium on time in view of the prevailing situation in the country as aresult of Corona Virus disease (COVID-19), are allowed to make such payment forrenewal of policies to their insurers on or before the 21st April 2020 toensure continuity of the health insurance cover from the date on which thepolicy falls due for renewal”.Anybreak in the renewal of a health cover may result in losing the benefit of thewaiting period in the policy. Hence, it’s better to keep renewing without breakand pay due premium online by visiting the insurer’s website.

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