Amid the ongoing Corona pandemic, Central Govt. has advised state governments to extend the validity of all vehicle-related documents up to December 31, 2020. However, the order doesn’t apply to the motor insurance policies.
Ministry of Road Transport and Highways’s letter of 24th August 2020 advised State Governments that in case the validity of fitness certificates, permits, driving licences, and registration certificates pertaining to vehicles have expired on or after 1st February 2020 and not extended due to the lockdown, such certificates may be treated as valid until December 31, 2020.
The documents which are now valid till the end of 2020 include driving license, vehicle registration and fitness certificate, pollution under control (PUC) certificate, etc. However, according to the General Insurance Council, this extension of validity does not apply to the car insurance policy.
It is hereby clarified to all policyholders that the letter issued by MoRTH does not include car and Two Wheeler Insurance policies, which needs to be renewed as per the renewal date. All vehicle owners are advised to get their insurance policies renewed on or before the due date of renewal for continued validity of the insurance policies,” the GIC said in a note.
According to a report, General Insurance Council (a representative body of insurance companies formed by Insurance Act 1938) said that vehicle insurance policies, especially own-damage cover, need to be renewed timely as they are not covered under the extension announced by the government of India in August 2020.
The pandemic has hit many sectors worldwide and non-life insurance sector has been hit particularly hard reporting a 5.55 per cent decline in gross premium income at Rs 22,774.60 crore during the month of September, according to IRDAI data.
Public sector insurers witnessed a 6.08 per cent fall in gross premium collection at Rs 10,959.88 crore in September this year, while the private players players reported a 5.04 per cent fall in premium at Rs 11,814.71 crore.