Updated: April 16, 2020 11:44:09 am
In a bid to provide some relief to health insurance and third-party motor insurance users of the country amid the ongoing nationwide lockdown, the government has extended the renewal dates of such policies till May 15.
The renewal dates of health and third party motor insurance which fall during the period of March 25 to May 3, can now be renewed till May 15, the Office of Finance Minister Nirmala Sitharaman tweeted a circular dated April 15.
With a view to mitigate hardship to policyholders whose health & motor (third party) insurance policies are due for renewal during COVID-19 lockdown, Govt. has issued notification allowing policyholders to make payments on or before 15.05.2020 towards renewal of their policies. pic.twitter.com/KauhDvovhf
— NSitharamanOffice (@nsitharamanoffc) April 16, 2020
This essentially means that such policies would now not lapse before May 15. Generally, on non-payment of renewal amount on or before the designated due date, such insurance policies cease to exist.
Even if some insurance companies allow renewal such policies after the due date, the customer is generally required to pay a penalty or fine in such cases.
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