Government provides relief for third party Motor Insurance & Health policy holders in the light of COVID-19 lockdown

Date for renewal of health, motor insurance policies extended to April 21

The Government has provided relief for third party Motor Insurance & Health policy holders in the light of COVID-19 lockdown. The Ministry of Finance has issued notifications on April 1, 2020, stating that the renewal dates of Health and Motor insurance policies which fall in the period from March 25, 2020, to April 14, 2020, are extended till April 21, 2020 due to coronavirus lockdown.

This means that your existing policies which are falling due for renewal from March 25, 2020, to April 14, 2020, can be renewed up till April 21,2020.

Third Party Motor Insurance :

If your current compulsory third-party Motor insurance policy is expiring between March 25, 2020, and April 14, 2020, and you are not able to renew your policy because of country-wide lockdown then you can renew such motor insurance policy by April 21, 2020.

According to the notification issued by Ministry of Finance,

“The policyholders whose motor vehicle third party insurance policies fall due for renewal during the period on and from the 25th March 2020 up to the 14th April 2020 and who are unable to make payment of their renewal premium on time in view of the prevailing situation in the country as a result of Corona Virus disease (COVID-19), are allowed to make such payment to their insurers on or before the 21st April 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal.”

Regular health insurance policy:

Similarly, if your health insurance policy is expiring and is due for renewal in the period from March 25, 2020, to April 14, 2020, you can renew your policy by April 21, 2020.

As per the notification,” The policyholders whose health insurance policies fall due for renewal during the period on and from the 25th March 2020 to the 14th April 2020 and who are unable to make payment of their renewal premium on time in view of the prevailing situation in the country as a result of Corona Virus disease (COVID-19), are allowed to make such payment for renewal of policies to their insurers on or before the 21st April 2020 to ensure continuity of the health insurance cover from the date on which the policy falls due for renewal”

———————————-

MINISTRY OF FINANCE
(Department of Financial Services)

NOTIFICATION

New Delhi, the 1st April, 2020

G.S.R. 229 (E) .—In exercise of powers conferred by sub-sections (1) and (5) of section 64VB of the Insurance Act, 1938, the Central Government hereby makes the following rules further to amend the Insurance Rules, 1939, namely:-

1. (1) These rules may be called the Insurance (Amendment) Rules, 2020.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Insurance Rules, 1939, in rule 59, after clause (n), the following clauses shall be inserted, namely:-

“(o) Motor vehicle third party insurance policies. – In the case of renewal of motor vehicle third party insurance policies falling during the period of lockdown due to outbreak of 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;

(p) Health insurance policies.- In the case of renewal of health insurance policies falling during the period of lockdown due to outbreak of 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, direct in this behalf.”.

[F. No. 14017/18/2020-Ins-II]

VANDITA KAUL, Jt. Secy.

Note : The principal rules were published in the Gazette of India vide notification number 59-1(1)/38, dated 3rd June, 1939 and was subsequently amended vide number G.S.R. 867, dated the 28th June, 1961, number G.S.R. 45, dated the 18th December, 1965, number G.S.R. 401, dated the 26th February, 1976, number S.O. 961(E), dated the 24th March, 1992 and number dated the 24th June, 2003.

———————————-

MINISTRY OF FINANCE
(Department of Financial Services)

NOTIFICATION

New Delhi, the 1st April, 2020

S.O. 1237 (E).—In exercise of powers conferred by sub-sections (1) and (5) of section 64VB of the Insurance Act, 1938, read with rule 59 of the Insurance Rules, 1939, the Central Government, having regard to the prevailing situation in the country as a result of Corona Virus disease (COVID-19), lockdown period of twenty-one days starting on and from 25th March, 2020 up to the 14th April, 2020 and in the public interest, hereby directs as under:-

“The policy holders whose motor vehicle third party insurance policies fall due for renewal during the period on and from the 25th March, 2020 up to the 14th April, 2020 and who are unable to make payment of their renewal premium on time in view of the prevailing situation in the country as a result of Corona Virus disease (COVID-19), are allowed to make such payment for renewal of policies to their insurers on or before the 21st April, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal.”.

2. This notification shall come into force on the date of its publication.

[F. No. 14017/18/2020-Ins-II]

VANDITA KAUL, Jt. Secy.

———————————-

MINISTRY OF FINANCE
(Department of Financial Services)

NOTIFICATION

New Delhi, the 1st April, 2020

S.O. 1238(E).—In exercise of powers conferred by sub-sections (1) and (5) of section 64VB of the Insurance Act, 1938, read with rule 59 of the Insurance Rules, 1939, the Central Government, having regard to the prevailing situation in the country as a result of Corona Virus disease (COVID-19), lockdown period of twenty-one days starting from 25th March, 2020 to the 14th April, 2020 and in the public interest, hereby directs as under:-

“The policy holders whose health insurance policies fall due for renewal during the period on and from the 25th March, 2020 to the 14th April, 2020 and who are unable to make payment of their renewal premium on time in view of the prevailing situation in the country as a result of Corona Virus disease (COVID-19), are allowed to make such payment for renewal of policies to their insurers on or before the 21st April, 2020 to ensure continuity of the health insurance cover from the date on which the policy falls due for renewal.”.

2. This notification shall come into force on the date of its publication.

[F. No. 14017/18/2020-Ins-II]

VANDITA KAUL, Jt. Secy.

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