Finance ministry extends motor, health insurance validity till April 21

BENGALURU: In a major relief for 23 crore individual vehicle owners and 40 crore citizens, who benefit from a private or state health insurance scheme, the ministry of finance has amended the law and extended validity of insurance papers till April 21, 2020.

In a gazette notification, the ministry of finance amended section 64VB of the Insurance Act, 1938, which does not permit advance coverage without payment of premium.

So going forward, for both vehicle owners and health insurance poliycholders, exemption has been granted for the period of lockdown March 25-April 15. "If your policy has expired in this time period then you will get continuation of coverage and continuity of benefits -- such as coverage of pre-existing conditions from the old policy in case of health or a no-claim bonus in case of motor," said an IRDAI official.

The ministry has also said motor and health policyholders will be given time till April 21, 2020 to make the premium payment for continued coverage. It also said this is being done to ensure the safety of citizens and avoid any inconvenience during the period of lockdown.

Source: The Times of India