In view of extension of nationwide lockdown, IRDAI has asked non-life insurance companies to give relaxation to policyholders to renew their non-life policies.
Health insurance and motor third party insurance policies expiring between March 25 and May 3 can now be renewed till May 15, 2020.
In a circular, IRDAI said, " The central government has directed that the policyholders whose health insurance policies fall due for renewal during the period on and from March 25, 2020 up to May 03, 2020 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 corona virus disease (COVID 19) are allowed to make such payment for renewal of their policies to their insurers on or before May 15, 2020 to ensure continuity of the insurance cover from the date on which the policy falls due for renewal, so that any valid claim triggered during the grace period can be paid. "
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 May 15 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 May 15, the renewal date for next year will be March 27.