Third party motor insurance is not only a legal requirement to drive your vehicle in India, but car insurance, in general, covers motor insurance policyholders against financial or legal risks faced as a result of accidents. Therefore, while buying a motor insurance policy is the first step towards securing yourself as a motorist, car insurance renewal must be done annually or as policy term ends. Here’s why it is important to renew your motor insurance policy before it expires.
A motor insurance policy is considered valid only till the due date stated in the car insurance policy document. Any claims made after the policy due date will be rejected by the car insurance provider. So, assume that a major accident involving your car takes place after your policy lapse, the entire cost of repairs and/or medical expenses if any will have to borne by you. In certain cases, this amount can be significant. Even if a mishap occurs a few hours after the policy lapse, the claim will not be honoured by the motor insurance provider. Therefore, it is essential to renew your motor insurance policy on time to ensure your claim is not rejected by the motor insurance company.
Car insurance companies can also deny the request for renewal of your motor insurance policy if they are of the opinion that too long a time passed after the policy expired. Even if they agree to renew the motor insurance policy, some penalties can be levied on you, which might increase your car insurance premium. Therefore, one of the other reasons to renew your policy on time is to keep your car insurance premium low.
Car insurance providers offer the No Claim Bonus (NCB), which is a kind of discount offered to policyholders for not making any claims during the policy tenure. This discount can be used to lower your car insurance premium while renewing your motor insurance policy. It starts from a certain per cent and increases with every claim-free year. The highest discount that one can get from NCB is 50 per cent, with no claims made for five consecutive years. If car insurance is not renewed on time, the policyholder might be at a risk of losing their accumulated NCB discount. Therefore, to retain your NCB, and continue enjoying reduced car insurance premiums, make sure you renew your car insurance policy on time.
After your car insurance policy has lapsed, you will need to contact your motor insurance provider who will send a surveyor to assess your car for any damages, and assess whether it can be insured. Renewing your motor insurance online saves you from many hassles including waiting for a surveyor to visit for physical inspection of your car. If you renew your car insurance policy before the policy expiry date, you can do it from the comfort of your home.
If several weeks or months have passed since your car insurance policy expired, your motor insurance provider can reject your claim for renewal. In this case, you might have to look for another car insurance provider, and this can be disappointing if you like your current car insurance company. Therefore, make sure you renew your car insurance on time if you want to avoid going through the hassle of starting your search for a car insurance company from scratch.
The views, thoughts, and opinions expressed in the artefact above are for marketing purposes only. Before concluding the sale, please refer to policy wordings and prospectus
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