The center has provided some relief for third party motor insurance and health insurance policy holders in view of the difficulties faced by the common man amid the outbreak of the coronavirus epidemic. The Finance Ministry has stated in a notification that the renewal dates for health and motor insurance policies were between 25 March to 3 May, which has now been extended to 15 May.
In the case of health insurance, the policy holder usually gets one month to pay the renewal premium. The policy can be renewed by paying premiums during this period. But policyholders are not covered at that time.
According to the old notification, this exemption was allowed in Lockdown Part 1 from 25 March to 14 April, where policy holders were asked to pay the premium dues by 21 April. But extending the lockdown period, the outstanding premium can be paid even after the lockdown ends on 3 May.
For third party motor insurance, if the customer is unable to renew it in time, then no grace period is available. After this, if a person drives without third party motor insurance, then a fine of 2,000 can be charged. According to section 146 of the Motor Vehicles Act 1988, third-party insurance is mandatory for driving vehicles on the roads.
