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With the country coming to a standstill amid the CoronaVirus pandemic people are facing numerous issues regarding health and motor policy renewals/premium payment. Keeping this in mind, the Insurance Regulatory and Development Authority of India (IRDAI) has announced some measures for both policyholders and insurance companies.
Policyholder Complaint Redressal
The normal response time for policyholder complaint redressal is 15 days, now an additional 21 days is allowed for all complaints which are received on or after 15th March and upto 30th April 2020. Claims arising on account of Covid -19 should be processed immediately.
Wherever email addresses of policyholders are available, policy documents may be issued through email within the prescribed period. SMS may also be used to confirm to the policyholders about issue of policy documents. As a special case, an additional period of 30 days is allowed for insurers for dispatch of documents for policies issued between 15th March and 30th April 2020.
No Hike in Premium Rates
Another important point to note here is that IRDAI will not increase the premium rates of third party motor insurance for all vehicle categories for the Financial Year 2020-21. While Every year, IRDAI revised new rates on April 1st to the tune of 10-40 percent, This year all insurers shall continue to charge the same rates as per the previous FY 19-20 for Motor Third Party Liability Insurance Cover from 1st April, 2020
Third Party Insurance renewal date extended
The policy holders whose motor vehicle third party insurance policies fall due for renewal during the period on and from the 25th March, 2020 up to the 14th April, 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 CoronaVirus disease (COVID-19), are allowed to make such payment for renewal of policies to their insurers on or before the 21st April, 2020 to ensure continuity of the statutory motor vehicle third party insurance cover from the date on which the policy falls due for renewal.
Policyholders must pay the renewal premium for the entire period of 12 months from the date it was due, on or before April 21, the circular stated.
However, this relaxation is not applicable for the vehicles whose policies had expired prior to the lockdown period.