Articles 1372 views April 2, 2020


  1. Pay your Motor and Health Insurance Premium till 21st April 2020.
  2. Get an Extended insurance Cover in case of Motor and Health Insurance if your Policy Expires During Lockdown.

The Finance Ministry of India has brought certain amendments regarding the law of Health Insurance and Motor Insurance Policies. This amendment is made to avoid the inconvenience of the policy taker during the lockdown due to the Coronavirus Outbreak. The amendment is made in Section 64VB of the Insurance Act 1938. So, you must see the leverage given by the finance ministry to the policy takers.

Amendment in the Insurance Act 1938

Section 64VB of the Insurance Act 1938 says that advance coverage is not permitted without the payment of the premium. But now the health policyholders and the Motor Insurance policyholders will get the continued coverage and benefits of the policy if their insurance policy expires in the lockdown period that is between 25th March 2020 to 15th April 2020. The health insurance policyholder will have continuous pre-existing conditions coverage from the old policy and the Motor Insurance Policyholder will get the no claim bonus even if their policy expires during the lockdown.

On the other hand, the finance ministry has extended the date of the premium of Motor and Health Insurance until the 21st of April 2020. You have the time to pay the premium of the policy till the 21st of April 2020 to get continued coverage of the policy. This Amendment is made to ensure the safety and security of the citizens of India.

Take Away

Well, in simple words, this amendment is basically leverage to the health and motor insurance policyholders that says if your premium due date falls between 25th March to 15th April then you have the time pay the premium till 21st April. Non-Repayment of the premium on the due date will not have any effect on the policy cover. The company will cover all the risks mentioned in the policy, although you haven’t paid the premium. This suspension is given due lockdown in the whole country so that the policyholder doesn’t face any financial burden.

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