Third-party motor insurance coverage premium dues falling throughout the interval of nationwide lockdown between March 25 and May 3, will be paid on or earlier than May 15.
New Delhi: In one more main monetary reduction, the federal government has prolonged the premium dues for motor and medical insurance coverage to be paid until May 15.In wake of the lockdown which has been additional prolonged for 19 days until May 3, the federal government has requested policyholders to defer fee of these insurance policies that are due for renewal throughout the lockdown.
In a revised notification on Wednesday, the finance ministry mentioned third celebration motor insurance coverage premium dues falling throughout the interval of nationwide lockdown between March 25 and May 3, will be paid on or earlier than May 15.
According to the earlier notification, it was relaxed for the lockdown interval between March 25 and April 14, the place policyholders got reduction for premium dues until April 21.
The extension of the lockdown now prompted the federal government to increase the premium paying dates and defer the funds.
“The deferred 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 so that any claim triggered during the grace period can be covered,” division of economic companies mentioned.
The authorities has provided an analogous extension for medical insurance coverage holders who’re unable to pay for renewal premiums in time due to the prevailing scenario within the nation on account of Covid-19 outbreak.
The present leisure in compliance measures for insurance coverage clients had come after the ministry had allowed comparable extension in respect of direct tax and oblique tax in March.