More time given for payment of premium of motor third party insurance

Vehicle owners have been given time till April 21 to pay third party motor insurance premiums falling due during the countrywide lockdown in wake of coronavirus outbreak, according to an Irdai circular.

The risk cover will continue from the due date of renewal of such policies. Motor Third Party Insurance is mandatory, the Irdai said on Thursday.

"The Central Government has directed that policyholders whose motor vehicle third party insurance policies fall due for renewal during the period on and from March 25, 2020, up to April 14, 2020, and who are unable to make payment of their renewal premium on time ... are allowed to make premium payment for renewal of policies to their insurers on or before April 21, 2020," the circular said.

Irdai further said when the policy is issued after receipt of premium, it should be ensured that the period of cover commences from the date the renewal was due without there being any break in the policy period provided such renewal fell due within the lockdown period.

Insurance Regulatory and Development Authority of India (Irdai) also asked the general insurers to ensure that adequate arrangements are made for ease of payment of premium by policyholders during the week following the end of the lockdown period.

Policyholders shall be required to pay the renewal premium for the entire period of 12 months from the date it was due, on or before April 21, 2020.

The government has imposed a countrywide lockdown with an aim to ensure social distancing among the public to check the spread of coronavirus, which has claimed thousands of lives in several countries.