New Delhi: The Government has allowed motor and health insurance policy holders to defer payment of their renewal premium falling due during the period of the lockdown.
"The government has provided relief for third-party auto insurance policy holders and health insurance policy holders in light of the #Covid19 situation. The relevant notifications are attached below. #IndiaFightsCorona," NSitharamanOffice tweeted.
The finance ministry in a notification has allowed third party motor insurance premium dues falling during the period of national lockdown between March 25 and April 14, to be paid on or before April 21 for the renewal of policy without any penalty.
The new rule " Insurance (Amendment) Rules, 2020 will come into force on the date of its publication in the Official Gazette.
As per the new rule in the case of renewal of motor vehicle third party insurance policies falling during the period of lockdown 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.
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Similarly in case of health insurance policies also 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.
Ministry of Finance in its notification also said "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 renewable of policies to their insurers on or before 21st April, 2020 to ensure continuity of the health insurance cover from the date on which the policy falls due for renewal."
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 week.
(With inputs from IANS)
