A lengthy reinstatement procedure and loss of no-claim bonus make it necessary to renew car insurance coverage on time. Policyholders should be aware of the difficulties that lapsed motor insurance policy brings in the form of disruption of services and penalties.
Some can genuinely forget to renew their insurance, but some insured intentionally do not renew the policy just to save some bucks. Its vehicle owner’s responsibility to give any compensation to the family of the victim involved in an accident.
You lose all accumulated benefits including no claim bonus if your car insurance coverage lapse. If your vehicle remains uncovered for more than around 90 days, then auto owner will lose the accrued benefits. In this scenario, auto owner also cannot transfer no-claim bonus to the brand new automobile in case policyholder was to buy one.
Car insurance premium for higher end and new vehicle will be higher as compared to old vehicles. Auto owners must be aware with the fact that reinstating a lapsed insurance takes efforts and time both.
You need to follow the process applicable while purchasing a new plan. But, the process is simple if you apply for third party coverage and Indian car insurance companies will give the plan even after a short-term break.
Buying a comprehensive policy is more preferred coverage but involves a slightly lengthy procedure. Insured requires submitting a fresh proposal application in case lapse comprehensive car insurance in India needs renewal.
Then, insurer inspects applicant’s vehicle and pre-existing damages will not be insured in the future, if any. In fact, insurance company in India may charge higher car insurance premiums for a vehicle whose insurance has lapsed or may reject the proposal.
Nowadays, Indian car insurance companies notify clients about policy renewal through SMS and emails alerts. Due to advanced technology, online renewal of insurance is an easy task now. Policyholders can get the benefit of receiving a digitally signed policy instantly.