The finance ministry on Thursday extended the renewal dates of health and motor insurance policies falling during the nationwide lockdown period till May 15 to ensure continuity.

This extension is for policies that are due for renewal between March 25 and May 3.

“With a view to mitigate hardship to policyholders whose health & motor (third party) insurance policies are due for renewal during the Covid-19 lockdown, the government has issued a notification allowing policyholders to make payments on or before May 15, 2020 towards renewal of their policies,” the finance ministry said in a tweet.

The finance ministry in two separate notifications said policy holders whose third party motor insurance or health insurance policies are up for renewal between March 25 up and May 3 and who were unable to pay their renewal premium on time can make them till May 15.

The notifications assured policy holders of continuity of third party motor cover as well as health insurance and assured that any valid claims during the period will be paid.

These notifications were necessary as the lockdown period was extended till May 3 to check the spread of Covid-19. The extension was done at the end of the 21-day lockdown on April 14. The renewal period was earlier extended till April 21.

It is expected that a similar extension will be effected for life insurance policies through a separate notification.

In case of health insurance, if a policy holder fails to pay the premium by the renewal date he/she gets a certain grace period to pay it. The policy can be renewed by paying the renewal premium during this grace period.

However, during the grace period, the policyholder is not covered and cannot file any claim for any medical or health event/accident/treatment taken during the grace period.

Driving a vehicle without a valid third party insurance is a crime and can attract a fine under the Motor Vehicles (Amendment) Act.

In case of damage to a third party (somebody else's car or property) or death of a third party (person) during the lapse period, the person would be liable to pay entire the compensation on his own.