Is not renewing your motor insurance policy on time a big deal? Can it get you in trouble? What is the best way to renew your policy? Find out the answers to all your questions here.
Motor insurance is a protective cover for your personal vehicles like cars or two-wheelers. Having the public’s best interest in mind, the government has made it mandatory-under Motor Vehicles Act- to purchase motor insurance when you get a vehicle. It is designed to financially secure you against disasters, risk, and loss.
The most common reasons behind motor Insurance policy lapse include:
- Not paying the renewal premium before or by the expiry date due to a forgetful mistake.
- Not covering the premium voluntarily for other reasons: Totaled vehicle/ plans to sell/ to save money on premium etc.
What is the need for renewal?
Motor insurance is an annual contract; in order to leverage its benefits and security consistently, it requires to be renewed every year.
In case you do not renew your policy before the expiration date, your policy will expire and it will be referred to as Break-in policy. You can issue you Break-In policy by two ways:
- Self-Inspection: Where few insurers allow you to download the app, click photos of your vehicle and upload on the app, the surveyor verifies the same and the policy is issued basis that
- Manual Inspection: Where you have to provide all the details of the previous policy to the insurer, they will appoint a surveyor and issue the policy basis surveyor's report
Why is it important to renew the insurance immediately?
A lapsed policy exposes you to a variety of risks. The most notable aftermath is that you cannot claim any insurance for any reason during the time you have a break-in policy. Moreover, in case you face an unfortunate event like theft or accident, you will have to bear all costs for third-party liability out of your own pocket.
Other consequences of driving without a car insurance policy include:
- Fine of INR 25,000 for light motor vehicles
- Fine of INR 75,000 for heavy motor vehicles
- Loss of NCB (No Claim Bonus)
- Vehicle registration suspension
- Driving license suspension
- Legal Complications
- Imprisonment of up to three months
To avoid such uncomfortable situations, it is best to renew your insurance policy as soon as possible.
How to renew your motor insurance policy?
You can easily renew your motor insurance policy using the 5nance platform. It is hassle-free, convenient, and can be done in 3 simple steps right from the comfort of your home. Required assistance is provided on 5nance platform through chat or call. 5nance representative will also help, wherever required on request online.
Here’s how it works:
- Put your existing policy number in the proposal form
- View quote
- Pay for renewal
Alternatively, you can also take a look at other insurer quotes to check the competency of your current insurer.
- Search Quote by filling in your registration and car details
- Select the most suitable premium quote
- Make payment
And, voila! Your policy is renewed.
You can also renew your policy offline. However, the only problem with this method is that it is time-consuming and demands a lot of patience when it comes to getting an appointment and vehicle survey verdicts for policy issuance. Each step usually takes up to three to five working days; in case you want a faster process, you will have to follow-up rigorously. Moreover, you only have a 24-hour window to visit your selected branch and make the payment after survey, otherwise, you will you have to start the process all over again.
Additionally, in case you want to go for another insurer rather than the existing one, you will have to do a lot of research on your own to find an insurance provider with competent motor insurance premium.
If you have a busy lifestyle and want your motor insurance renewal process to be fast-tracked, renewing your policy online, or the 5nance way, is the better option. Bonus: It gives you an edge in terms of priority customer service.