Date for Renewal of Motor Insurance Policies Extended to May 15 Due to COVID-19

The Union Government has allowed motor and medical insurance policyholders to defer fee of their renewal premium falling due throughout the interval of the lockdown that has now been prolonged until May 3.

The finance ministry in a revised notification has now allowed third-party motor insurance coverage premium dues falling throughout the interval of nationwide lockdown between March 25 and May 3, to be paid on or earlier than May 15.

In the sooner notification, this rest was allowed for the preliminary lockdown interval from March 25 to April 14 the place policyholders had been requested to pay premium dues until April 21. But for the reason that interval of lockdown has been prolonged, premium dues could be paid after the lockdown ends.

The (delayed) fee can even ‘guarantee continuity of the statutory motorized vehicle third get together insurance coverage cowl from the date on which the coverage falls due for renewal,’ division of monetary companies mentioned in a notification dated April 15.

The authorities has offered the identical deferred fee choice to medical insurance policyholders too who needed to pay renewal premium throughout the interval of the lockdown.

The adjustments have been made in view of the prevailing scenario within the nation attributable to COVID-19 illness and a consequent 19-day extension of nationwide lockdown from April 15 to May 3, 2020.

The newest adjustments in compliance measures for insurance coverage clients had come after finance ministry allowed comparable deferral in efficiency of statutory obligation in respect of direct tax and oblique tax final month.