Finance Minister Nirmala Sitharaman said on Thursday that the Centre will allow health and motor insurance policy holders to make payments on or before May 15, an extension announced after the lockdown was extended till May 3 to combat the spread of the novel coronavirus.
The government notification, issued on Wednesday, said the renewal dates of health and third party motor insurance that fall during the period between March 25 and May 3, can now be extended to May 15. Therefore, such policies will now not lapse until May 16.
Usually, in the case of health insurance, a grace period of one month is provided for renewal, Mint reported. However, the individual is not covered by the policy during this period. On the other hand, there is no grace period in third-party motor insurance but a penalty of Rs 2,000 may be imposed.
India has so far recorded 12,380 coronavirus cases, according to the Ministry of Health and Family Welfare. As many as 414 people have succumbed to the disease, 1,488 people have recovered, and one person has migrated.