Motor third party insurance and health insurance policies whose renewal date falls during the lockdown period (March 25 to April 14) can be renewed till April 21.
The Insurance Regulatory and Development Authority of India (IRDAI) shared the details of a notification issued in this regard by the Department of Financial Services with insurers. The regulator said the Centre had permitted motor vehicle TP and health insurance policyholders, whose policies fall due for renewal during the 21 days to make premium payment by April 21.
The relaxation is for those who are unable to make payment towards the renewal in view of the situation as a result of COVID 19. “Insurers shall ensure adequate arrangements are made for ease of payment of premium by policyholders during the week following the end of the lockdown period (the last date being April 21),” IRDAI said.
The regulator said such policyholders would be required to pay the renewal premium for the entire period of 12 months from the date it was due, by April 21. It directed the insurers to communicate details to the policyholders concerned “immediately, in a manner that is correctly understood by them” as well as inform agents and intermediaries.
When the policy is issued, on receipt of the premium before April 21, “it shall be ensured that the period of cover commences from the date the renewal was due without any break in the policy period.”
Motor Business Head of Policybazaar.com Sajja Praveen Chowdary said the Finance Ministry notification is mainly for those who generally opt for Motor TP cover only and facing hardship on monetary or process front for now. The notification does not affect most of the private vehicles as most private vehicles have a comprehensive motor insurance policy that includes Own Damage cover also.
Customers with comprehensive motor insurance policies should renew before the expiry date so that they need not go through the vehicle inspection process, possible increase of premium/losing No Claim Bonus (NCB), he said in a statement.
