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 (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 1.
The Insurance Regulatory and Development Authority of India (IRDAI) too has announced a slew of measures for policyholders and insurance companies.
Last month, the insurance regulator asked life insurers to extend the grace period for payment of renewal premiums by an additional window of up to 30 days if policyholders want it. All the major insurance companies including ICICI Prudential Life insurance, SBI Life Insurance have now extended the grace period for paying renewal premiums in March. Life Insurance Corporation (LIC) has also extended the deadline up to April 15, 2020, Livemint reported.
"In light of the challenging situation prevailing in the country, IRDAI’s decision to provide an extended time period to pay renewal premiums is a step in the right direction and definitely customer friendly," said Puneet Nanda, deputy managing director, ICICI Prudential Life Insurance Company Limited.
According to Livemint.com, health insurance companies were asked to extend dates for renewal of insurance policies, which are expiring during the coronavirus lockdown duration, till April 21.
The central government has directed that policyholders whose health insurance policies fall due for renewal during the period on and from March 25 up to April 14, 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 COVID-19 are allowed to make premium payment for renewal of policies to their insurers on or before April 21, 2020 to ensure continuity of the health insurance cover, the IRDAI circular said.
"We welcome the prompt measures taken by the regulator in the customer’s interest such as the extension of grace period for paying premiums. We were already prepared for this and have implemented it immediately in order to ensure steady and continuous services to all our customers," said Mayank Bathwal, CEO, Aditya Birla Health Insurance.
Policyholders must pay the renewal premium for the entire period of 12 months from the date it was due, on or before April 21, the circular stated.
