Govt extends motor, health premium dues payment till May 15

The finance ministry in a revised notification has now allowed third party motor insurance premium dues falling during the period of national lockdown between March 25 and May 3, to be paid on or before May 15.

New Delhi:The Union Government has allowed motor and health insurance policy holders to defer payment of their renewal premium falling due during the period of the lockdown that has now been extended till May 3.

The finance ministry in a revised notification has now allowed third party motor insurance premium dues falling during the period of national lockdown between March 25 and May 3, to be paid on or before May 15.

"With a view to mitigate hardship to policyholders whose health & motor (third party) insurance policies are due for renewal during COVID-19 lockdown, Govt. has issued notification allowing policyholders to make payments on or before 15.05.2020 towards renewal of their policies," the finance ministry said in a tweet.

The finance ministry in two separate notifications said policy holders whose motor insurance third party insurance or health insurance policies that are due in the lockdown period from March 25 up to May 3 and who are unable to make payment of their renewal premium on time due to the lockdown are allowed to make such payments till May 15.

The notifications assured policy holders of continuity of motor insurance third party cover as well as health insurance cover and assured that any valid claim during the period will be paid.

These notifications have been necessitated as the lockdown period was extended by Prime Minister Narendra Modi till May 3 to check the spread of COVID-19. The extension was done at the end of 21-day lockdown on April 14.

In the earlier notification, this relaxation was allowed for initial lockdown period from March 25 to April 14 where policy holders were asked to pay premium dues till April 21. But since the period of lockdown has been extended, premium dues can be paid after the lockdown ends.

The (delayed) payment will also 'ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal,' department of financial services said in a notification dated April 15.

The government has provided the same deferred payment option to health insurance policy holders too who had to pay renewal premium during the period of the lockdown.

The changes have been made in view of the prevailing situation in the country due to Covid-19 disease and consequent 19-day extension of national lockdown from April 15 to May 3, 2020.

The latest changes in compliance measures for insurance customers had come after finance ministry allowed similar deferral in performance of statutory duty in respect of direct tax and indirect tax last month.

(IANS and PTI Report)