Coronavirus Update: Government Extends Health and Motor Insurance Premium Deadline
You can now pay your health and motor insurance (third party) premium, even if the policy lapses during the lockdown
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The central government has issued a notification, deferring the payment of health and motor insurance premium until May 15. This decision has been taken because a lot of people have been unable to pay their premium due to the country-wide lockdown.
In case of motor vehicle insurance, the rule is only applicable on third-party insurance. So, in essence, if you were to have an accident during the lockdown, and your insurance had expired, damages to your vehicle would not be covered even if you were to make the payment before May 15. However, any third-party charges that you would be liable to pay to the other party in the event of an accident would still be covered under this insurance.
For those of you in the dark about third-party insurance, it is the most basic insurance one can buy for a vehicle. It pays the third party involved in an accident but doesn’t cover the cost of damages to your vehicle.
The extension in deadline is for those whose insurance expires between March 25 and May 3, 2020. As of now, the lockdown is in place until May 3 but it could be extended further.
Also Read: Carmakers Extend Warranty Deadlines In Light Of Coronavirus Lockdown
Also Read: Auto Industry Asks For GST Reduction Among Other Requests In The Wake Of Coronavirus
