Mumbai: The Union Government has allowed motor and health insurance policy holders to defer payment of their renewal premium falling due during the period of the lockdown that has now been extended till 3 May.
The Finance Ministry in a revised notification has now allowed third party motor insurance premium dues falling during the period of national lockdown between 25 March and 3 May, to be paid on or before 15 May.
In the earlier notification, this relaxation was allowed for initial lockdown period from 25 March to 14 April where policy holders were asked to pay premium dues till 21 April. But since the period of lockdown has been extended, premium dues can be paid after the lockdown ends.
The (delayed) payment will also ‘ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal,’ department of financial services said in a notification dated 15 April.
The government has provided the same deferred payment option to health insurance policy holders too who had to pay renewal premium during the period of the lockdown.
The changes have been made in view of the prevailing situation in the country due to Covid-19 disease and consequent 19-day extension of national lockdown from 15 April to 3 May, 2020.
The latest changes in compliance measures for insurance customers had come after finance ministry allowed similar deferral in performance of statutory duty in respect of direct tax and indirect tax last month.