Why the renewal of Health Insurance policies are extended?

Health Insurance Policies: Now the Health Ministry will be able to renew the health insurance policies by May 15, the Finance Ministry has extended the date due to the increased lockdown

The Finance Ministry has on Thursday extended the date of renewal of health insurance and third party motor insurance policies which were expiring during the lockdown. Health insurance and motor insurance policies that expire from 25 March to 3 May can now be renewed by 15 May.

The Finance Ministry tweeted that the government has extended the renewal date to May 15, 2020, in view of the problems being faced by the policyholders of policies that expire. Due to the lockdown, if the policyholders of health insurance or third party insurance are not able to fill their renewal premium on time, then they can make this payment till May 15. A notification has been issued about this.

The first chance was till 21 April

During the 21-day lockdown announced earlier, the government had extended the deadline for renewal of health insurance and motor insurance policies expiring between 25 March 2020 and 14 April 2020 to 21 April 2020. Now it has been increased to 15 May. It has also been assured in the notification that the continuity of the policy will remain intact and any valid claim will be paid during the lockdown.

On April 14, Prime Minister Narendra Modi increased the lockdown implemented in the country to 3 May to prevent the spread of Kovid 19. The previously announced 21-day lockdown ended on 14 April.

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Health insurance policies: provision for a grace period for renewal

In the case of health insurance, if the policyholder is unable to pay the renewal premium by the date of renewal, then he is given some additional deferment. In this additional the time he can renew the policy by filling the renewal premium. However the policy the holder is not covered during this extra time and neither can he file a claim in medical or health-related events like accident or treatment of illness etc.

Third-party insurance is not a crime

In the case of a vehicle, driving without third party motor insurance is a crime and doing so may attract a fine under the Motor Vehicles (Amendment) Act. If there is any damage to any other person or property while driving or someone dies due to the car, then the owner of the vehicle has to pay compensation to that person or his family. That is why there is third party insurance.

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