Why and When Do You Need A Car Inspection

Inspection of the vehicle forms an integral part of the car insurance process. If you forget to policy on time, the same will lapse. This means that you will have to undergo the entire process, beginning from applying for a policy. However, failure to renew a policy can also cause the insurer to reject your application or charge you a higher premium. Talking about vehicle inspection, there are certain situations when an inspection is mandatory, whereas some situations where it isn’t required. Here we will discuss both situations, along with the process that is involved in the inspection of a vehicle for insurance purposes.

When Is Car Inspection Required:

If you are renewing your car insurance policy, a car inspection will be carried out compulsorily. However, there are several other instances when a car inspection will be carried out.

  • If there has been a gap between the date when your policy expires and the due date before which you were supposed to renew your policy, the policy will lapse, which will require an inspection.
  • If you are switching from a third party only policy to a comprehensive policy, the insurance company will ask to inspect your vehicle.
  • An inspection is also required if the policy has been transferred to another person. This means that if you have sold your vehicle to another person, then it is compulsory for you car’s insurance policy to also be transferred to the new owner, in their name. It is entirely up to the new owner to either cancel the existing policy and take a new one or continue with the same policy. However, whatever the case, as long as the policy is being transferred to another owner, the insurance company will inspect the vehicle.
  • Vehicle inspection will also be done if you have gotten additional accessories or equipment such as anti-theft devices, CNG kit, etc. fitted in your vehicle and you want to purchase cover for those accessories.
  • Vehicle inspection if of course mandatory when your vehicle has met with an accident and has been damaged due to any peril covered under the policy. In such cases, the inspection of the vehicle will be done be carried out either by the insurer or an authorized surveyor who will assess the damages and estimate the cost of repairs. The inspection is also done, in this case, to find out if the claim being made is not fabricated.

When Is A Car Inspection Not Required:

Inspection of a vehicle will not be required if it is being insured only against third party liability. Also, inspection of the vehicle is not necessary if there has been no gap between the policy’s expiry date and the due date of renewal of the policy. When the policy is renewed in time, it does not lapse.

There are certain insurance companies which will carry out the vehicle inspection free of cost, while there are others which may charge a fee for doing so. Inspection of the vehicle, for insurance purposes, will either be done by an authorized agent or by an official from the insurance company.

Vehicle Inspection Process:

When we speak of vehicle inspection for insurance purposes, it refers to the physical examination of the vehicle. A physical examination is done primarily for two reasons which are (i) To confirm that the vehicle being insured does exist, and (ii) To observe and record the condition of the vehicle to prevent the policyholder from making a claim for any pre-existing damages.

For the purpose of inspection, the authorized surveyor or insurance company person will note some details of the vehicle such as its chassis number and registration number. The will also take pictures of your vehicle as visual proof to document your vehicle’s condition. In case the vehicle shows signs of any damages or dents, the same will also be photographed. The physical inspection will also include inspection of all devices which have been installed or fitted separately in the vehicle and are not a part of the factory fittings.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

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