Business

More time to renew third party, health policies

Lockdown extension spurs IRDAI move

Insurance regulator IRDAI has extended the time available to renew, without a break in their validity, motor third party and health insurance policies whose renewal date coincides with the lockdown period (March 25 to May 3).

These policies can be renewed till May 15.

Earlier this month, IRDAI had set April 21 as the date for renewal of the policies in light of the lockdown announced till April 14. With the government announcing extension of the lockdown till May 3, the regulator on Thursday updated its earlier communication.

IRDAI Member (Non-Life) T.L. Alamelu cited the Central government’s direction, allowing time till May 15 to policyholders whose motor TP policies fall due for renewal from March 25 to May 3 but are unable to renew in view of the prevailing situation. The extension is to ensure continuity of the statutory Motor TP 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.

Likewise, another circular referred to government directions permitting health insurance policyholders, whose policies are due for renewal from March 25-May 3 but could not renew, to renew the same till May 15.

This will “ensure continuity of the health 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,” she said.

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Printable version | Jul 5, 2020 8:38:54 PM | https://www.thehindu.com/business/more-time-to-renew-third-party-health-policies/article31359434.ece

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