Motor, Health Insurance Validity Extended by Finance Ministry Till May 15 Amid Coronavirus Lockdown
The decision has come after the government extended the 21-day-lockdown till May 3 to prevent the spread of the coronavirus in the country. Earlier, the ministry had granted extension of validity only till April 21.
New Delhi, April 16: In a major relief for vehicle owners and health insurance payers, the validity of motor and health insurance policies in India have been extended by the Finance Ministry till May 15 from the previous April 21 deadline. The decision came after the government extended the lockdown till May 3 to prevent the spread of the coronavirus in the country. "With a view to mitigate hardship to the policyholders whose Health and Motor (Third Party) insurance policies are due for renewal during COVID-19 lockdown, the Central Government issued Notifications allowing such policyholders to make premium payments till May 15. This will ensure a continued cover and hassle-free claims payment during the grace period", the notification stated.
Earlier, the ministry had granted extension of validity only till April 21. The first lockdown in India, which was imposed on March 24 by Prime Minister Narendra Modi, was set to get over on April 14. However, on the last day of the lockdown, the Prime Minister announced the second phase of lockdown till May 3.
According to a report by TOI, the extension in the case of motor insurance is only for motor third-party (TP) and not for owned-damage (OD) or personal accident insurance. The report states that motor comprehensive policies, IRDAI officials said the extension and validity will apply to the motor-third party component. Life Insurance Policy Holders Get Relief as IRDAI Extends Deadline for Paying Premium Extended by 30 Days.
The TOI report states that the extension has been granted for policies set to expire between March 25 - May 3. The officials informed that policy expired in this time period will get continuation of coverage and continuity of benefits -- such as coverage of pre-existing conditions from the old policy in case of health or a no-claim bonus in case of motor.
In India, the total coronavirus cases mounted to 12, 380 on Thursday, the Union Ministry of Health and Family Welfare said. Of these, 10,477 are active cases while 1,488 individuals have been cured and discharged from the hospitals. So far, India has reported 414 death due to COVID-19.
(The above story first appeared on LatestLY on Apr 16, 2020 12:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).