In the previous, a driver could get away just by paying a fine of Rs 1,000, if caught driving about with a lapsed policy. However, with the new Motor Vehicle Act 2019, they are necessary to shell out Rs 2,000 for the very first time and the fine doubles for repeating that offence. There can be lots of motives why you may well have missed the renewal date of your motor insurance coverage policy, but driving about devoid of renewing the policy could price you dearly.
An insurance coverage policy lapses when the policyholder stops paying the premiums on the due date and also through the grace period. Based on the form of the policy, it could either lapse automatically or permit the policyholder a window for revival.
Having mentioned that, renewing an active insurance coverage policy, or even obtaining an insurance coverage policy on-line, is simpler than renewing a lapsed insurance coverage policy. The selection of reviving a policy begins acquiring restricted, as the quantity of days the renewal has been delayed increases. Nevertheless, there are methods to revive a lapsed motor insurance coverage policy.
Renewal choices
To begin with, you can either method an intermediary or an agent, insuring on-line, or go to the firm workplace, to revive your lapsed cover.
If you want to carry forward your preceding No Claim Bonus (NCB), you will have to renew your insurance coverage cover inside 90 days of expiry. Delaying and going beyond 90 days, will not only imply loss of the no claim bonus but also could outcome in paying larger premiums.
Renewing third-party and complete policy
The mandatory third-party insurance coverage plans defend the policyholder from paying a hefty fine in case of an accident. A third-party insurance coverage policy pays for the losses and injury or harm to the third party brought on by the insured car in case of an accident. Note that, it does not cover something associated to the policyholder’s personal car. A complete policy, having said that, involves harm to the policy holder’s personal car along with the third-party cover. Hence, the premiums for third-party insurance coverage are low when compared to complete motor insurance coverage policies.
Opting for a new complete insurance coverage cover is normally time-consuming as insurers ask and inspect specifics about the vehicle’s situation prior to approving a policy. However, all these can be avoided although reviving a lapsed policy, if the policyholder tends to make the request inside 90 days of the lapse of the preceding policy. Online insurers, as properly as, net aggregators normally approve for the cover devoid of an inspection if the request is produced inside 90 days.
After the gap of 90 days, if a policyholder tries to revive the policy, the policy may well also get rejected by the insurer. For instance, although reviving a policy, couple of minor damages in a car are normally ignored, but a car with more than 4 minor dents or a crack in the windshield, could get rejected.
Earlier, most insurers insisted on a physical inspection, having said that, now with the pandemic and digital penetration, insurers also have the selection of a digital self-inspection technique for physical verification, wherein the policyholder have to take images or videos of the car making use of the insurer’s app.