NEW DELHI: The Centre may have advised state governments to extend the validity of all vehicle-related documents up to December 31, 2020. But, if you think that applies to your motor insurance, you would be wrong.
According to a clarification last weem from the General Insurance Council, which is an agency created by insurance regulator IRDAI to serve as a link to the non-life insurance industry, the Ministry of Road Transport and Highways (MoRTH) does not apply to motor insurance specifically.
“MoRTH 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.
It is hereby clarified to all policyholders that the letter issued by MoRTH does not include motor 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.
The non-life insurance sector has been hit particularly hard by the pandemic, 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. India’s 34 non-life insurance companies had garnered a premium income of Rs 24,111.78 crore in the same month of previous fiscal year 2019-20.
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. However, the seven standalone health insurers among the non-life insurance companies registered a 38.04 per cent jump in premium income at Rs 1,543.62 crore during the month.