Ministry of Finance publishes the Insurance (Amendment) Rules, 2020

Apr 02, 2020 | by Avantis RegTech Legal Research Team


Industry Specific Compliance

The Department of Financial Services on April 01, 2020, has published the Insurance (Amendment) Rules, 2020 to further amend the Insurance Act, 1938.

In rule 59 which talks about the return of deposits at the time of winding up of insurance company, after clause (n), the following clauses shall be inserted, namely:

i.         Clause (o) Motor vehicle third party insurance policies: In the case of renewal of motor vehicle third party insurance policies falling during the period of lockdown due to outbreak of COVID-19 pandemic, the risk may be assumed subject to the condition that the premium shall be paid within such time as the Central Government may, by notification, specify in this behalf.

ii.       Clause (p) Health insurance policies:  In the case of renewal of health insurance policies falling during the period of lockdown due to outbreak of COVID-19 pandemic, the risk may be assumed subject to the condition that the premium shall be paid within such time as the Central Government may, by notification, direct in this behalf.

It will come into force on the date of its publication in the Official Gazette.

[Notification No. G.S.R. 229 (E)]


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