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Irdai to extend renewal dates of health, motor third-party policies

Irdai’s forthcoming decision will also include its stand on the continuation of cover, Standard Fire and Special Perils Policy (commonly known as property policy) by the general insurers to the “unoccupied properties” for more than one month.

By: ENS Economic Bureau | Mumbai | May 25, 2020 2:01:07 am
irdai, insurance regulatory and development authority, irdai insurance, insurance sector For life insurance policy holders, the insurance regulator has already allowed extended grace period up to May 31, 2020 for all policies where premium was due in the month of March 2020. (File Photo)

Insurance regulator Irdai is planning to extend the date for renewals of health and motor third-party policies (TP) till the first week of June, in the wake of extension of the coronavirus-induced lockdown till May 31.

The further extension of date by the Insurance Regulatory and Development Authority of India (Irdai) will facilitate the payment of the motor TP insurance premium and health insurance premium dues falling during the period of ongoing lockdown from March 25 to May 31 to be paid in the first week of June.

The announcement by Irdai, which will made soon, will be the third extension provided by the government and the regulator for payment of renewal premiums for health and motor TP covers that could not be paid during the ongoing lockdown, that has been extended for the fourth time on May 17.

Irdai’s forthcoming decision will also include its stand on the continuation of cover, Standard Fire and Special Perils Policy (commonly known as property policy) by the general insurers to the “unoccupied properties” for more than one month.

According to the General Insurance (GI) Council, a Property Policy specifies that “if the building insured or containing the insured property becomes unoccupied and so remains for a period of more than 30 days (not applicable for dwellings), the insurance ceases to attach as regards the property affected unless the insured, before the occurrence of any loss or damage, obtains the sanction of the insurer signified by endorsement upon the policy by or on behalf of the company”.

Earlier, with the intervention of Irdai, the GI Council — the representative body domestic general insurers and reinsurers operating in India — had announced that general insurers have agreed to continue their existing property cover for even the unoccupied ones till May 3, and that Irdai had further asked the general insurers to provide proper guidance to the corporates on this matter after May 3.

But there had been no communications from Irdai or the GI Council on such matters after the national lockdown was further extended till May 17 or May 31.

However, for life insurance policy holders, the insurance regulator has already allowed extended grace period up to May 31, 2020 for all policies where premium was due in the month of March 2020.

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