The government has extended the date of renewal of Health and Motor (Third Party) insurance policies till May 15 due to coronavirus lockdown.
The benefit of the extended deadline is available for those policyholders whose policies fall due for renewal during the period between 25 March and 3 May.
"With a view to mitigating hardship to policyholders whose Health and Motor (Third Party) insurance policies are due for renewal during COVID-19 lockdown, Central Govt issued Notifications allowing such policyholders to make premium payments till May 15th," Finance Minister Nirmala Sitharaman said in a tweet.
"The move is taken to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal so that any valid claim triggered during the grace period can be paid," the Finance Ministry said in a notification.
Usually, if a vehicle owner fails to renew third party motor insurance on time, a penalty of Rs 2,000 is charged. According to Section 146 of the Motor Vehicles Act, 1988, third-party (TP) insurance is mandatory for vehicle owners to drive.
Earlier, the government had extended the time for the renewal of health and motor vehicle insurances till April 21.
(Edited by: Mansi Jaswal)