INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Ref: IRDAI/NL/CIR/MOT/ 090 /04/2020 16th April, 2020
ALL GENERAL INSURERS (OTHER THAN SPECIALISED INSURERS)
Re: Premium payment for renewal of Motor Third Party Insurance policies falling due during the lockdown period ( 25th March, 2020 to 3rd May, 2020) as a result of COVID 19 situation
Further to Circular Ref: IRDAI/NL/CIR/MOT/079/04/2020 dated 2nd April, 2020, it is hereby informed that the Department of Financial Services, Government of India has issued Notification dated 15th April, 2020 wherein it has amended the Order issued vide S.O.1237(E) dated 1st April, 2020 on the subject.
2. Vide the above amendment, the Central Government has directed that the policyholders whose motor vehicle third party insurance policies fall due for renewal during the period on and from the 25th March, 2020 up to the 3rd May, 2020 and who are unable to make payment of their renewal premium on time in view of the prevailing situation in the country as a result of Corona Virus disease (COVID 19) are allowed to make such payment for renewal of their policies to their insurers on or before 15th May, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal so that any valid claim triggered during the grace period can be paid.
2. Kindly note that all instructions in para 3 of Circular Ref: IRDAI/NL/CIR/MOT/079/04/2020 dated 2nd April, 2020 with regard to policyholder servicing shall apply mutatis mutandis.
Please acknowledge this circular and confirm having noted the contents. The notification issued by the Central Government is enclosed for ready reference.