If you’ve let your motor insurance policy lapse, there are ways to fix it! An insurance policy will lapse if you do not pay the premium by the due date and miss the grace period as well. If your policy has lapsed, you cannot ride or drive your vehicle on Indian roads. It is mandatory to have a valid insurance plan on your vehicle that covers at least third party liabilities. Not heeding this requirement is a liable offence. Plus, if anything were to happen, you could stand to incur huge financial bills for damages and injuries. Renewing your policy will provide you with peace of mind and lesser stress on the road.
Ways of Renewing your Motor Insurance
Renewing your policy once it has lapsed takes a little more work. You can renew your motor insurance in the following ways:
Renew the Old One
You can contact your current insurer and request for the process. This information is usually available online or in the policy document. You will be required to pay up the due premiums. A fee might be levied and then your policy will be renewed.
Find a New Insurer
You can also opt to renew your policy with a new insurance company if you find a better deal. The best way to do this is to compare policy options on BankBazaar. You can get quotes from different insurers in the market and find the best policy for your vehicle. After finalising your choice, you can get a surveyor to pay a visit and survey the vehicle. Once this is done, you will be given a policy.
Buy a Policy Online
A policy can be bought online once the surveying is done. Customers must note that the inspection will be valid only for a period of 24 hours. So a policy must be purchased within this time period.
Things to bear in mind
If you policy has lapsed for a period of 3 months or 90 days, then you will have to forfeit the No Claim Bonus. NCBs help you get discounts on your premiums every year if you make no claims. Forfeiting the NCB can result in a big loss.
GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017