Renewal of health, auto insurance can be deferred
Payment can be made till April 21; for vehicles, relaxation is only for third-party insurance
The Union government on Thursday allowed health and motor policyholders to defer their renewal, if it falls between March 25 and April 14 — the lockdown period.
The payments can be made till April 21 and the relaxation is only for thirdparty motor insurance, apart from health, the government said.
“In the case of renewal of motor vehicle third-party insurance policies falling during the period of lockdown due to the outbreak of the Covid-19 pandemic, the risk may be assumed subject to the condition that the premium shall be paid within such time as the central government may, by notification, specify in this behalf,” said a Union government notification.
The government issued the same direction for health policies.
The insurance regulator on Thursday said, “It shall be ensured that the period of cover commences from the date the renewal was due without any break in the policy period”.
Sajja Praveen Chowdary, Motor Business Head, Policybazaar. com, said: “The insurer will consider the policy renewed (during lockdown) and assume the risk or take the risk into consideration.” Any kind of claim on the thirdparty side will then be admissible.
However, this relaxation is not applicable for the vehicles whose policies had expired prior to the lockdown period and also on vehicles which have comprehensive policies — motor third party and motor own damage.
Most commercial vehicles run on third-party policies.
“The regular private car user has comprehensive policy and this relaxation is not applicable to them. They should renew their policies on time because if they don’t and the policy expires, then at the time of renewal, they have to get an inspection done and the premium may change. And, beyond a certain point of time, the no-claim bonus also goes away,” Chowdary added.
The Insurance Regulatory and Development Authority of India has asked life insurers to extend the grace period for payment of renewal premiums by an additional 30 days if the policyholders want.
It has asked health insurance companies that they can excuse a delay in renewal by up to 30 days without deeming it as a break in policy.
Earlier, state insurance behemoth Life Insurance Corporation gave relaxations to policyholders in payment of premiums due till April 15.