In wake of the lockdown which has been further extended for 19 days till May 3, the government has asked policyholders to defer payment of those policies which are due for renewal during the lockdown.
In a revised notification on Wednesday, the finance ministry said third party motor insurance premium dues falling during the period of national lockdown between March 25 and May 3, can be paid on or before May 15.
According to the previous notification, it was relaxed for the lockdown period between March 25 and April 14, where policyholders were given relief for premium dues till April 21.
The extension of the lockdown now prompted the government to extend the premium paying dates and defer the payments.
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“The deferred 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 so that any claim triggered during the grace period can be covered,” department of financial services said.
The government has offered a similar extension for health insurance policy holders who are unable to pay for renewal premiums in time because of the prevailing situation in the country as a result of Covid-19 outbreak.
The current relaxation in compliance measures for insurance customers had come after the ministry had allowed similar extension in respect of direct tax and indirect tax in March.
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