Central Government issues Notifications allowing  Motor (Third Party) insurance policyholders to make premium payments till May 15th which are due for renewal during COVID19 lockdown.

MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 15th April, 2020

S.O. 1258 (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 caused due to Corona Virus disease (COVID-19) and consequent extension of lockdown period by further nineteen days starting on and from 15th April, 2020 up to the 3rd May, 2020, hereby amends the order issued vide S.O.1237(E) dated the 1st April, 2020 of the Government of India, Ministry of Finance, Department of Financial Services in the public interest.

In the said notification, in the paragraph for the words beginning with “The policy holders whose motor vehicle third party insurance policies”, and the words ending with “the policy falls due for renewal”, the following paragraph shall be substituted, namely :-

“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 3rd May, 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 15th May, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal, so that any valid claim triggered during the grace period can be paid.”

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

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

SAURABH MISHRA, Jt. Secy.

————-

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA

Ref: IRDAI/NL/CIR/MOT/090/04/2020

16th April, 2020

CIRCULAR

ALL GENERAL INSURERS (OTHER THAN SPECIALISED INSURERS)

Re: Premium payment for renewal of Motor Third Party Insurance policies falling due during the lockdown period ( 25th March, 2020 to 3rd May, 2020) as a result of COVID 19 situation

Further to Circular Ref: IRDAI/NL/CIR/MOT/079/04/2020 dated 2nd April, 2020, it is hereby informed that the Department of Financial Services, Government of India has issued Notification dated 15th April, 2020 wherein it has amended the Order issued vide S.O.1237(E) dated 1st April, 2020 on the subject.

2. Vide the above amendment, the Central Government has directed that 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 3rd May, 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 their policies to their insurers on or before 15th May, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal so that any valid claim triggered during the grace period can be paid.

3. Kindly note that all instructions in para 3 of Circular Ref: IRDAI/NL/CIR/MOT/079/04/2020 dated 2nd April, 2020 with regard to policyholder servicing shall apply mutatis mutandis.

Please acknowledge this circular and confirm having noted the contents. The notification issued by the Central Government is enclosed for ready reference.

(T.L. ALAMELU)

MEMBER (NON-LIFE)

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