IRDAI relaxes the premium payment for renewal of motor third party insurance polices

Apr 06, 2020 | by Avantis RegTech Legal Research Team


Industry Specific Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) on April 02, 2020, has given relaxation on the premium payment for renewal of motor third party insurance polices due during the lockdown period as a result of COVID-19 pandemic. The policyholders whose motor vehicle third party insurance policies is due and are unable to make payment of their renewal premium during the lockdown period that is in between March 25, 2020 to April 14, 2020, are allowed to make premium payment for renewal of policies to their insurers on or before April 21, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover.

Additional points in this regard are:

• Renewal premium shall be paid by policyholders for the entire period of 12 months from the date it was due, on or before April 21, 2020.

• Insurers need to immediately communicate these details to the concerned policyholders via email, SMS, telephonic call, website display etc. to correctly depict the above information.

• Other related parties including agents and intermediaries should aware of the last date for premium payment.

• Once the premium payment is done by the policyholder, it must be ensured by the insurer that the period of policy cover commences from the date of renewal was due without any break in the policy period, provided that such renewal fell within the lockdown period.

• Insurers must also ensure that sufficient measures are taken to ease the payment process for policyholders, post the lock-down period.

[Ref. No: IRDA/NL/CIR/MOT/079/04/2020]


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