Relief For Policyholders: Finance Ministry Eases Deadline For Health, Motor Insurance Renewals Amid Lockdown

New Delhi: Policyholders can take a breath of relief as the Union Finance Ministry on Thursday said that all health and motor insurance policies that are due amid the lockdown period can be renewed till May 15. Also Read – Maharashtra: Man Stabs Relative to Death After Argument Over Cigarette, Arrested

Early morning today, Finance Minister Nirmala Sitharaman took Twitter to announce the move to ease the hardships of people seeking policy renewal. Also Read – Coronavirus LIVE: Residents of 72 South Delhi Houses Under Quarantine as Pizza Delivery Boy Tests Positive

“With a view to mitigate hardship to insurance holders whose health & motor (third party) insurance policies are due for renewal during COVID-19 lockdown, Govt. has issued notification allowing policyholders to make payments on or before 15.05.2020 towards renewal of their policies,” she said in her tweet. Also Read – COVID-19: Only 17 New Cases From Delhi, 1 From Kerala. Is the Curve Flattening?

With a view to mitigate hardship to policyholders whose health & motor (third party) insurance policies are due for renewal during COVID-19 lockdown, Govt. has issued notification allowing policyholders to make payments on or before 15.05.2020 towards renewal of their policies. pic.twitter.com/KauhDvovhf

— NSitharamanOffice (@nsitharamanoffc) April 16, 2020

In a subsequent tweet, she further clarified that the step has been taken for policies due between March 25 and May 3, “in order to ensure their continuity and hassle-free claims payment during the above grace period”.

The development comes days after the government extended the nationwide lockdown from April 15 to May 3 in a bid to battle out the pandemic.

Many people have been facing difficulty reaching out to insurance companies for their policies and claims due to the country-wide lockdown and much-needed ‘social distancing’ to contain the spread of the deadly coronavirus outbreak.

Last month, the Insurance Regulatory and Development Authority of India (IRDAI) had asked insurers to continue business operations and ensure proper service and sensitivity to policyholders and customers in these trying times.

The IRDAI had also permitted life insurers to provide their customers an additional window of up to 30 days for paying renewal premiums in view of disruptions caused by coronavirus lockdown.