Insurance (Amendment) Rules, 2020 - Motor Vehicle & Health Insurance

Insurance Sector _ Update Due COVID 19

Insurance (Amendment) Rules, 2020.

·       Overview

MINISTRY OF FINANCE, (Department of Financial Services vide notification / Gazette id No. CG-DL-E-01042020-218994 and G.S.R. 229 (E) issued dated 01^st April, 2020 has published Insurance (Amendment) Rules, 2020.

·       Applicability:

They shall come into force on the date of their publication in the Official Gazette, i.e. 01st April, 2020.

·        Changes via this notification:

In the Insurance Rules, 1939, in rule 59, after clause (n), the following clauses shall be inserted, namely:-

Rule 59(o) : Motor vehicle third party insurance policies. –

In the case of renewal of motor vehicle third party insurance policies falling during the period of lockdown due to outbreak of COVID-19 pandemic, the risk may be assumed subject to the condition that the premium shall be paid within such time as the Central Government may, by notification, specify in this behalf;

Rule 59(p): Health insurance policies.-

In the case of renewal of health insurance policies falling during the period of lockdown due to outbreak of COVID-19 pandemic, the risk may be assumed subject to the condition that the premium shall be paid within such time as the Central Government may, by notification, direct in this behalf.”

Link: http://egazette.nic.in/WriteReadData/2020/218995.pdf

·        Directions issued by Department of Financial Services

“The policy holders whose health insurance policies / motor vehicle third party insurance policies, fall due for renewal during the period on and from the 25th March, 2020 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 Corona Virus 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 health insurance / statutory motor vehicle third party, cover from the date on which the policy falls due for renewal.”

(MOF, Gazette ID : CG-DL-E-01042020-218994 dated 01.04.2020)

Link: http://egazette.nic.in/WriteReadData/2020/218994.pdf     

Note: The principal rules were published in the Gazette of India vide notification number 59-1(1)/38, dated 3^rd June, 1939 and was subsequently amended vide number G.S.R. 867, dated the 28th June, 1961, number G.S.R. 45, dated the 18th December, 1965, number G.S.R. 401, dated the 26th February, 1976, number S.O. 961(E), dated the 24th March, 1992 and number dated the 24th June, 2003

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