The Ministry of Finance vide press release dated 16.04.2020 announced that keeping in mind the difficulties of policyholders whose Health and Motor (Third Party insurance) policies are due for renewal during the lockdown and COVID-19 the Central Government has issued notification allowing such policy holder to make premium payments till 15.05.2020. The notification states that those policy holders whose health or motor vehicle third party insurance policies is due for renewal during the period on or from 25.03.2020 to 03.05.2020 and are unable to make payment for renewal within the time because of the current situation arose due to COVID-19 can make such payment to their respective insures on or before 15.05.2020.

The government allowed this relaxation in order to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy is due for renewal and any valid claim arising during this grace period can be paid. The extension is provided to ensure that the insurance cover continues and to provide hassle free claims payment during the grace period.