IRDAI has given relaxation to policyholders to renew their non-life policies. With this, health insurance and third party motor insurance policies expiring between March 25 and April 14 can be renewed till April 21, 2020.
In its latest circular, IRDAI said, "The central government has directed that policyholders whose health insurance policies fall due for renewal during the period on and from March 25 up to April 14, and who are unable to make payment of their renewal premium on time in view of the prevailing situation in the country as a result of COVID-19 are allowed to make premium payment for renewal of policies to their insurers on or before April 21, 2020 to ensure continuity of the health insurance cover."
IRDAI has asked non-life insurance companies and insurance intermediaries like agents and brokers to inform policyholders about this extension through email, SMS, phone calls and website notification immediately.
Further, these policyholders will also get grace period of another 30 days after April 21 to renew policies. However, the insurance regulator has clarified that the due date of policies will not be extended. For instance, if a policyholder renews his health insurance policy due for renewal on March 27 on April 21, the renewal date for next year will be March 27.
