Car, bike, health insurance renewal pending? Good news! Here comes major relief from Modi government

Is your car, bike, health or any vehicle insurance pending for renewal? Here is good news for you from Modi government! Giving a major relief, the Modi government has allowed motor and health insurance policy holders to defer payment of their renewal premium falling due during the period of the lockdown.

Notification issued by finance ministry

-The finance ministry in a notification has allowed third party motor insurance premium dues falling during the period of national lockdown between March 25 and April 14, to be paid on or before April 21 for the renewal of policy without any penalty.

-The (delayed) payment will also 'ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal,' department of financial services said in a notification dated April 1.

- The government has provided the same deferred payment option to health insurance policy holders too who had to pay renewal premium during the period of the lockdown.

The changes have been made in view of the prevailing situation in the country coronavirus disease and consequent 21-day national lockdown. The latest changes in compliance measures for insurance customers had come after finance ministry allowed similar deferral in performance of statutory duty in respect of direct tax and indirect tax last week.

On March 31, it was reported that customers who receive EMI payment notice at the beginning of every month can heave a sigh of relief as banks have decided to defer receiving such payments for a period of three month under the terms of a Covid 19- RBI package announced on Friday.

Several banks, including State Bank of India, sent tweets on Tuesday informing the customers that they have deferred payment of EMIs of housing loan, vehicle loans, MSME loans and payment of all other term loans whose installentins are due after March 1 and up to May 31 by three months.

The system of deferment will function automatically as most banks would not raise demand for EMIs for next three months. The repayment period post the moratorium will also get extended accordingly.