Health, motor insurance renewal date extended till May 15: Sitharaman

Extension for policy renewals due between March 25 and May 3, the lockdown period

Union Finance Minister Nirmala Sitharaman during the post-budget press conference in New Delhi | PTI Union Finance Minister Nirmala Sitharaman | PTI

Amid the coronavirus lockdown, Finance Minister Nirmala Sitharaman has extended the date for motor and health insurance payments due for renewal to May 15. The move will provide slight breather to policyholders whose policies were due for renewal during the lockdown period--between March 25 and May 3. 

"With a view to mitigate hardship to policyholders whose health and motor (3rd party) insurance policies are due for renewal during lockdown, Govt. has issued notification allowing policyholders to make payments on or before 15.05.2020 towards renewal of their policies," FM Sitharaman tweeted on Thursday. "This is for policies that are due between March 25 and May 3, in order to ensure their continuity and hassle-free claims payment during the above grace period," she added. 

On March 25, India went into a 21-day lockdown, which has now been extended till May 3 by Prime Minister Narendra Modi. 

On Thursday, Sitharaman's office also published the government notification announcing the policy extension. The extension has been effective April 15, Wednesday. 

As a result, eligible policyholders will be able to make payments on or before May 15 to ensure continuity of cover applicable from the original due date for renewal. In other words, insurers will continue to provide the policy cover from the original due date.