Do you own a car? Do you have an insurance? Have you renewed it? All these questions must sound so similar, all of us have gone through this apprehension phase where we forget to renew insurance on time because of other commitments in our life. But this of course does not apply to everyone. But if you are one of those who owns a car and the policy has lapsed here is all you have to know.
First of all, having any type of valid motor insurance according to the vehicle requirement is mandatory under the law. The IRDA has recently announced that all the insurers must cooperate with the police officials to provide a minimum third-party motor insurance. Since the number of insured vehicles percentage is really low, the traffic police officials are randomly checking vehicles to know if they have a valid insurance policy. If you are looking to renew or purchase a new motor insurance, then please provide your AADHAAR details along with the policy as it has been made mandatory to link your AADHAAR with any motor insurance policy:
So, what happens if the car insurance policy has expired?
Every year, each motor insurance policy has to be renewed unless you have chosen a long-term cover in which case you will have to renew it only once in 3 years.
Note: The insurer always reminds about the renewal of car insurance policy much in advance through SMS or calls. Do not ignore them.
- If your policy expires, then the lapsed policy will be temporarily named as ‘break-in’ policy. If you fail to renew it as early as possible, the vehicle will be inspected by the insurer if and when you want to renew the policy.
- If there are minor damages, the insurer will make a note of the same and calculate the premium amount based on the Insured Declared Value or market value as on that day.
- Driving with an expired car insurance policy is illegal and a serious offense. If you are caught during random checking you can be fined and probably jailed for the same.
- When you renew the policy, the premium amount will also be raised considering you a risky driver. The no-claim bonus that you have accumulated by not claiming the insurance in that policy year will also expire.
- The riskiest of all when you have met with an accident and you do not have a valid car insurance policy to claim and utilise the benefits. You will end-up paying for all the repairs, hospital fee and third-party liability from your own pocket which is much more expensive when compared to paying for all these through an insurance.
- If you claim the insurance without renewing, please note that it is not possible because your car insurance policy is only valid as long as it has not expired.
Renewing the lapsed policy:
- By that we mean, renew your policy through proper channels like via online with the help of the trusted third-party websites or insurer’s website for a faster result.
- Contact the insurer immediately if you prefer the offline platform and submit necessary documents and information and duly fill a policy renewal form to renew the vehicle.
- If you are going the digital way, then few clicks should do the job. Go to any third-party website, click on insurance renewal option, fill in the details and submit the form. On submission the insurer will send the premium amount payable as per the details provided.
- You can make online payment via net banking or debit/credit card. Once the transaction is complete, the policy documents will be sent to you via email within few minutes.
- If you want to change the insurer you can do so by submitting a written application to your present insurer a week in advance. In the meantime you have to buy a new car insurance from another insurer and submit the copy of the same for cancellation of old insurance.
- You can also use the online tool to compare different insurers and quotes sent by them to make a clear decision.
- Documents needed for insurance renewal are: old policy details, registration certificate, Driver’s License, clearance certificate from the survey inspector, vehicle details and other documents as needed.
The vehicle survey certificate is however not valid for more than 24 hours, so make sure you submit all the documents on time. So if you want to avoid the fuss and penalties, then renew the policy on time and enjoy a tension free ride.