Amid the lockdown due to coronavirus another good news for automobile owners. Ministry of Finance has decided to increase the renewal date of third party motor insurance that is between March 25 to April 14. Such motor insurance can now be paid until April 21st.
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This is a huge relief for policyholders that were not able to renew their motor insurance due to the lockdown.
The notification covers the policyholders that own a third party motor insurance and were supposed to get the same renewed on or between the dates of 25th March 2020 to 14th April 2020 can now renew the motor insurance on or before 21st April 2020 amid the lockdown due to the coronavirus.
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This also resulted in the amended of section 64VB of the Insurance Act, 1983 which states that additional advance coverage through insurance will not be provided unless premium is paid for.
In a normal situation if you do not pay a premium to renew your motor insurance it will expire. Driving with an expired insurance result in a fine of 2000 INR and in case of an accident you will be liable to pay any and all of the compensation from your own pockets. This results in getting your own car repaired as well as paying the third party a full sum to get their car fixed as well.
The new notification is a sigh of relief as during this troubling times it might not be possible for some people to get renew their motor insurance which can result in issues later on.
Not only car insurance is affected by this but also health insurance with a similar time period being accepted for an extension.
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