IRDA to extend renewal payment date for motor & health policies till June 1st week
After the announcement,on Sunday, of lockdown 4.0 by the government till May 31, to contain the spread of Covid-19.pandemic,the insurance regulator IRDAI is now planning to extend the date for the renewals of health and motor third-party policies(TP) till the first week of June.
The further extension of date by the IRDAI will facilitate the payment of the motor TP insurance premium and health insurance premium dues falling during the period of ongoing national lockdown between March 25 and May 31,to be paid in the first week of June.
The announcement by the IRDAI which will made soon,will be the third extension provided by the government and regulator for the payment of renewal premiums for health and motor TP covers that could not be paid during the ongoing national lockdown that has been extended for the fourth time on May 17.
IRDAI's forthcoming decision will also include its stand on the continuation of cover,Standard Fire and Special Perils Policy(commonly known as property policy)- by the general insurers to the``unoccupied properties’’.for more than one month.
According to the GI Council,a Property Policy specifies that If the building insured or containing the insured property becomes unoccupied and so remains for a period of more than 30 days (Not applicable for Dwellings), the insurance ceases to attach as regards the property affected unless the insured, before the occurrence of any loss or damage,obtains the sanction of the insurer signified by endorsement upon the policy by or on behalf of the company.
Earlier,with the intervention of the IRDAI,the GI Council,the representative body domestic general insurers and reinsurers operating in India, had announced that the general insurers have agreed to continue their existing property cover for even the unoccupied ones till May 3 and the IRDAI had further asked the general insurers to provide proper guidance to the corporates on this matter after May 3.
But there had been no communications from the IRDAI or the GI Council on such matters after the national lockdown was further extended till May 17 or May 31.