The renewal dates of health and motor insurance policies which fall during the period of March 25 to May 3 are now extended till May 15, the Finance Ministry said in a notification.
This implies that the existing policies which are due for renewal during the lockdown can be renewed till the middle of the next month. Usually if you fail to pay premium on or before the renewal date, the policy ceases to be in force.
In case of health insurance, the policy holder usually gets one month to pay the renewal premium. The policy can be renewed by paying the premium in this grace period but the policyholders are not covered during that period.
If the policyholders pay on or before May 15, the health insurance policy will continue to remain in effect from the date on which the policy falls due for renewal.
For third party motor insurance, if the customer fails to renew it on time, there is no grace period. In fact, a penalty of ₹2,000 can be charged for driving a vehicle without third party motor insurance. According to Section 146 of the Motor Vehicles Act, 1988, third-party (TP) insurance is mandatory for you to be able to drive on roads.
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," finance ministry said in a notification. Any valid claim triggered during the grace period can be paid, ministry added.