The government has given relief to those taking health and motor (third party) insurance policies amid a 40-day lockdown across the country due to coronavirus. Now such policy holders can pay the premium till 15 May. The Union Finance Ministry has issued a gazette notification related to this.
According to the information received from the Union Finance Ministry, the grace period for the premium payment due to the lockdown, they will continue to get insurance cover during this period and if any claim is made for this period, they will also get the payment.
The Finance Ministry notification states that policyholders whose health or motor vehicle (third party) insurance policy is to be renewed between March 25, 2020 to May 3, 2020 and are not able to do so due to the lockdown, This grace period has been declared for him. They can now pay the premium till May 15, 2020.
It is worth mentioning that if the premium is not paid till the renewal date in third party motor insurance, then the policy ends. But the government has given relief to lakhs of such policy holders by declaring a grace period.