The ministry of finance issued notifications on April 1, 2020, stating that the renewal dates of health and motor insurance policies which fall in the period from March 25, 2020, to April 14, 2020, are extended till April 21, 2020 due to coronavirus lockdown.
This extension is important because normally these insurance policies cease to be in force if not renewed on renewal date, reports The Economic Times.
Generally, in case of health insurance, there is a grace period for renewal, but the policy is not in force during this time period till renewed. Also, the insurance company can ask the insured to undergo a medical test/check up before renewing the policy during grace period.
Failing to renew your health insurance policy on due date Normally, if you fail to renew your health insurance policy on time, a 15 to 30-day grace period is provided to pay the premium dues. If still you have not made premium payment within the grace period, then your policy lapses. After that you will have to buy a new policy which will not include any of your earned bonuses (like No Claim Bonus) and moreover, you will have to go through a waiting period for certain illnesses again. Hence, you must remember to renew the policy on or before the due date.
Third-party motor insurance If your current compulsory third-party insurance policy is expiring between March 25, 2020, and April 14, 2020, and you are not able to renew your policy because of country-wide lockdown then you can renew such motor insurance policy by April 21, 2020.
Failing to renew motor insurance policy on due date Normally, if you don't renew your third party insurance on the due date then the policy expires. If this happens then you can be fined Rs 2000 for driving a vehicle without third party insurance under the Motor Vehicles (Amendment) Act. Worse, in case of damage to a third party -some else's car, property - or death of a third party (person) during the period when the 3rd party insurance is not in force, you would be liable to pay entire compensation on your own.