Date for Renewal of Motor Insurance Policies Extended to May 15 Due to COVID-19
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The Union Government has allowed motor and health insurance policyholders to defer payment of their renewal premium falling due during the period of the lockdown that has now been extended till May 3.
The finance ministry in a revised notification has now allowed third-party motor insurance premium dues falling during the period of national lockdown between March 25 and May 3, to be paid on or before May 15.
In the earlier notification, this relaxation was allowed for the initial lockdown period from March 25 to April 14 where policyholders were asked to pay premium dues till April 21. But since the period of lockdown has been extended, premium dues can be paid after the lockdown ends.
The (delayed) payment will also 'ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal,' department of financial services said in a notification dated April 15.
The government has provided the same deferred payment option to health insurance policyholders too who had to pay renewal premium during the period of the lockdown.
The changes have been made in view of the prevailing situation in the country due to COVID-19 disease and a consequent 19-day extension of national lockdown from April 15 to May 3, 2020.
The latest changes in compliance measures for insurance customers had come after finance ministry allowed similar deferral in performance of statutory duty in respect of direct tax and indirect tax last month.