Government extends auto insurance renewal deadline to May 15
The Govt. of India announced to extend the lockdown till May 3. For that Ministry of finance also announced to extend the deadline for the Auto Insurance deadline till May 15. Before, it was till April 21 only.
The renewal date extension is only for those whose Insurance validity ended between March 25 to May 3 i.e. the time during the lockdown. The same benefits also cover health insurance policies. To ensure a continued cover and hassle-free claims payment during the grace period, in the notification dated April 16, 2020,
the Ministry said:-
With a view to mitigating hardship to the policyholders whose Health and Motor (Third Party) insurance policies are due for renewal during COVID-19 lockdown, the Central Government issued Notifications allowing such policyholders to make premium payments till May 15th. This will ensure a continued cover and hassle-free claims payment during the grace period. The notification says that the policyholders whose health or motor vehicle third party insurance policies fall due for renewal during the period on and from the 25th March 2020 up to the 3rd May 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 policies to their insurers on or before the 15th May 2020 to 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 valid claim triggered during the grace period can be paid.
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The further extension in renewal date for third-party auto insurance should help alleviate any chance of punitive penalization once the lockdown is lifted. Presently, driving without valid insurance can attract penalties of Rs 1,000-2,000, and/or punishment of up to three months for the first offense and Rs 4,000 and/or imprisonment for up to 3 months for the second offense. The Government extends auto insurance renewal deadline to May 15 but we will suggest renewing the insurance if it is possible.