The Centre has allowed health and motor insurance policyholders to defer payment of their renewal premium falling due during the period of the ongoing lockdown that has been extended till May 3.
The finance ministry in a revised notification on Thursday has now allowed third-party motor insurance premium dues falling during the period of national lockdown between March 25 and May 3, to be paid on or before May 15.
"With a view to mitigate hardship to policyholders whose health&motor (3rd party) insurance policies are due for renewal during lockdown, Govt. has issued a notification allowing policyholders to make payments on or before 15.05.2020 towards renewal of their policies," said Finance Minister Sitharaman.
"This is for policies that are due between 25th March and 3rd May, in order to ensure their continuity and hassle-free claims payment during the above grace period," she added.
In the previous notification, this relaxation was allowed until April 21. But because the lockdown has been extended, premium dues can be paid once the lockdown comes to an end.
The delay in 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,'' read a notification from the department of financial services dated April 15.
Similarly, 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 alterations have been made in wake of the prevailing situation in India due to coronavirus outbreak and extension of nationwide lockdown by 19 days from April 15 to May 3.
The changes in compliance measures or insurance customers come after finance ministry allowed similar deferral in performance of statutory duty in respect of direct and indirect tax last month.