In India, it is mandatory to at least have third-party automobile insurance coverage as per the Motor Vehicle Act. Similar to other insurance coverage plans, with vehicle insurance coverage policies, policyholders get coverage up to a distinct time limit, which expires as the policy term ends. Then the insurer is required to renew the strategy to continue receiving cover for any damages or expenditures of the vehicle.
Experts say folks, if identified driving on the roads with no a valid motor insurance coverage policy, may have to face economic and legal complications. Hence, a policyholder is left uninsured against various dangers, if the policy is not renewed on time.
After a motor insurance coverage policy expires, the very first and foremost factor the policyholder really should do is to inform the insurance coverage corporation. Experts say informing the insurer really should be completed on a priority basis, as quickly as the policyholder gets an update about the motor insurance coverage policy’s expiry.
Generally, following the insurance coverage corporation is informed, an appointment is created for the survey of the insured automobile. The surveyor sent by the insurance coverage corporation inspects the automobile and sees if there are any pre-current damages, just before approving for renewal. Industry authorities say in case of any damages there are probabilities that the insurer would set a fixed deductible on the harm and the policyholder would be charged in the course of additional claims.
Additionally, the policyholder can also opt for a new vehicle insurance coverage policy, post the inspection course of action. The renewal period is the time when one can switch to an additional insurer if the policyholder is not satisfied with the existing insurer. Keep in thoughts that the inspection is not valid for a longer duration, therefore, you will have to acquire the new vehicle insurance coverage policy as quickly as the inspection is completed. Experts say if one in fact plans on switching amongst insurers, they really should look for insurers that provide much better services and enhanced coverage on the automobile. Policyholders can also opt for further rewards or attributes in their motor insurance coverage strategy in the course of the renewal course of action.
Note that if the renewal is not completed just before the due date, insurers lapse insurance coverage plans. Also, if there are any accident or harm that requires location following the due date, and the policyholder has not renewed the policy, the insurer is not liable to bear the expenditures.
Industry authorities say, renewing the policy on time rewards the policyholder with attributes such as No Claim Bonus (NCB) and other rewards as per the strategy. If a policy stays lapsed for 90 days (3 months) the policyholder may shed the rewards of NCB.
Hence, it is often recommended by authorities to contemplate renewing the motor insurance coverage policy on time to be on the safer side and to prevent any economic and legal concerns.