INSURANCE
REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Ref: IRDAI/NL/CIR/MOT/ 090
/04/2020 16th April, 2020
CIRCULAR
ALL GENERAL INSURERS (OTHER THAN SPECIALISED
INSURERS)
Re: Premium payment for
renewal of Motor Third Party Insurance policies falling due during the lockdown
period ( 25th March, 2020 to 3rd May, 2020) as a result
of COVID 19 situation
Further to Circular Ref:
IRDAI/NL/CIR/MOT/079/04/2020 dated 2nd April, 2020, it is hereby
informed that the Department of Financial Services, Government of India has
issued Notification dated 15th April, 2020 wherein it has amended
the Order issued vide S.O.1237(E) dated 1st April, 2020 on the
subject.
2. Vide the above
amendment, the Central Government has directed that the policyholders whose
motor vehicle third party insurance policies fall due for renewal during the
period on and from the 25th March, 2020 up to the 3rd
May, 2020 and who are unable to make payment of their renewal premium on
time in view of the prevailing situation in the country as a result of Corona
Virus disease (COVID 19) are allowed to make such payment for renewal of their
policies to their insurers on or before 15th May, 2020 to
ensure continuity of the statutory motor vehicle third party insurance cover
from the date on which the policy falls due for renewal so that any valid claim
triggered during the grace period can be paid.
2. Kindly note that all
instructions in para 3 of Circular Ref: IRDAI/NL/CIR/MOT/079/04/2020 dated 2nd
April, 2020 with regard to policyholder servicing shall apply mutatis
mutandis.
Please acknowledge this circular and confirm having noted
the contents. The notification issued by the Central Government is enclosed for
ready reference.
(T.L.
ALAMELU)
MEMBER
(NON-LIFE)