Note that you will have to purchase the new car insurance policy as soon as the inspection is done as the inspection is not valid for a longer duration.
It is mandatory to have at least the third-party vehicle insurance as per the Motor Vehicle Act, in India. Usually, car insurance policies offer coverage up to a specific time limit, similar to other insurance plans. When the policy term ends, the insurance plan no more covers the damages or expenses, and the policyholder can file a claim only after the policy is renewed.
Rakesh Goyal, Director, Probus Insurance, says, “If an individual is found driving on the roads without a valid motor insurance policy, then he/she might have to face financial and legal problems.” Hence, if your policy expires, you will be left uninsured. For instance, if you encounter any unfortunate situation such as an accident after the policy term expires, there will be no help from the insurer.
Usually, the insurance policy lapses if it is not renewed before the due date by the policyholder. If a policyholder does not renew the policy within the due date, and any accident or damage occurs after that, the policyholder has to bear the entire expenses by himself. After the policy is renewed, the insured can get the coverage and the benefits again.
Goyal of Probus Insurance says, “The best perk of renewing the policy on time is that the insured can avail the No Claim Bonus (NCB) and other benefits as per the plan.” He adds, “Someone whose policy has lapsed more than 3 months ago might lose the benefits of NCB. Such a situation could be of considerable loss for a safe driver/individual who hasn’t claimed in the past years.”
Additionally, as per the Indian Motor Laws’ norms, driving a car without a valid car insurance policy is a punishable offense, wherein strict actions and fines are also imposed on the driver under such a case. Hence, it is always suggested to consider renewing the motor insurance policy on time to avoid any financial and legal issues.
Here is what should you do after your motor insurance policy expires:
Once a motor insurance policy expires, the first and foremost thing to do is to inform the insurer from where the insurance plan was bought. Experts say as soon as the policyholder gets an update about the motor insurance policy’s expiry, this must be done on a priority basis.
Once the insurance company is informed, an appointment would be fixed for the survey of your vehicle if your policy has expired. The surveyor inspects the car and sees if there are any pre-existing damages. Goyal says, “There are chances that the insurer would set a fixed deductible on the damage and would be charged to the insured during the further claims. Post the inspection process, the policyholder can also opt for a new car insurance policy.” Note that you will have to purchase the new car insurance policy as soon as the inspection is done as the inspection is not valid for a longer duration.
Having said so, the renewal period is the time when you can also switch to another insurer if you are not happy with the current insurer. If you are planning to switch between insurers, look for an insurer that offers better services and enhanced coverage on the vehicle. As a policyholder, you can also opt for additional benefits or features in your motor insurance plan during the renewal process. Hence, compare quotes online and find the insurer that can offer better insurance plans at comparatively low premium rates.