Wednesday, 19 Feb 2020

A Simple Guide to Car Insurance Renewal

When you buy a new car, it is mandatory to buy a car insurance policy in India, as per the Motor Vehicles Act, 1988. It is a serious offence if you drive a car without third party liability policy. It is usually issued for one year, after which it must be renewed for the continuation of its benefits. Even if you’ve chosen a long-term policy, it will need renewal after the stipulated tenure is over.

Keep reading to know more about how a policy can be renewed:

Car insurance renewal

You will have to renew your car insurance policy when its expiry date is nearing, or else it will lapse. You can do this by simply visiting your insurance company’s website and renewing your policy online. All you need to do is, fill in your adequate details and pay the premium online. But if your policy expires, renewing it becomes a little complicated.

Lapsed policy renewal

In case your policy has expired, you will have to renew it again. The process of renewal will require inspection of your vehicle. You will have to approach an insurance company for the same. They are the ones who will arrange for inspection of your car. A surveyor of the insurance company will then submit the inspection report of your vehicle. Only after your report has been scrutinized, will you be allowed to renew your policy. Insurance renewal can be done online merely by paying the required premium through digital modes.

Things to remember

  • If your policy expires and you do not renew it within the grace period, then the accumulated No Claim Bonus (NCB) that you earned in your existing policy would be lost.
  • It is possible to renew your expired policies online only after its inspection is done.
  • Inspection can only be done if you have a comprehensive car insurance policy. In case of third-party policy, it is possible to renew your vehicle without inspection even though your policy has expired.
  • Certain insurers will allow you to renew your expired car insurance policy without inspection. You can easily renew your lapsed policy after providing a few details and give a declaration.

Just like you need a valid license for driving a car on roads, you need a valid car insurance cover, as it is mandatory for all vehicle plying on Indian roads. It is also essential that you renew your policy from time to time or else you won’t get to enjoy all the benefits that it offers. However, if your policy has expired and you have not renewed it during the grace period, you can do so online only after your vehicle is inspected. The insurance company sends a reminder before your policy is about to expire and it is wise to act on this immediately. To avoid violations of the law and to safeguard your NCB concessions, add car insurance renewal to your checklist.