The country wide 21-day lockdown that has ensued in the backdrop of the governments strategy to counter the spread of the coronavirus has had a multitude of implications for the country. One such impact has been seen on the policy holders of insurance policies, who have been unable to make their insurance renewal payments in light of the lockdown.
In light of this, the central government has deferred the due date for the renewal of health and motor vehicular insurance policies to the 21st of April, 2020.This has been done for those people whose insurance policies are set to expire within this lockdown period, and would be unable to renew the same owing to the lockdown. The notification released by the government provides for the application of this deferral for policy holders whose policies would be expiring between the 25th of March 2020 and the 14th of April, 2020.
The notification is targeted to aid those policy holders who are unable to make the payment of their renewal premium due to the situation that prevails in the country due to the outbreak of COVID-19. The notification would help ensure the continuity of these statutory motor vehicle third party insurance, covering the date on which the vehicle insurance policy would fall due for renewal.
Similar to the provision for vehicular insurance, those with health insurance policies within the same dates that are unable to make the payment of the insurance renewal premium would also be allowed to make this payment till the 21st of April, 2020, in order to ensure the continuation of their health insurance.
This notification aims to ensure the continuance of the insurance of the people of the country, especially those that have been affected by the lockdown and have been unable to make the requite payments.
