Govt relaxes dates to pay insurance premiums
This relaxation includes continuity benefit for insurance policyholders, despite a delay in premium payment, till 21 April in this case
The finance ministry on Thursday extended the deadline for paying health and third party automobile insurance premiums.
If a policyholder’s insurance premium is due for renewal during the lockdown—25 March to 14 April—and they are unable to pay on time, such payments can be made by 21 April. The step will give relief to policyholders who are unable to make payments amid the three-week nationwide lockdown.
This relaxation includes continuity benefit for insurance policyholders, despite a delay in premium payment, till 21 April in this case.
“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,” according to an official notification.
“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,” it said.
The coronavirus disease has disrupted business activities, led to factory shutdowns, closure of schools and colleges, along with complete ban on transportation barring movement of goods. This prompted the government to announce relief measures.
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First Published:2 Apr 2020, 11:37 PM IST
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