Why should you renew your policy on time?
It’s crucial to renew your car insurance policy on time and avoid any break in the policy. It’s because it can bring in several legal as well as financial hassles.
As per the Motor Vehicles Act, a valid third-party motor insurance cover is mandatory for every vehicle running on Indian roads. If you don’t renew your car insurance policy on time, it will leave you without a third-party cover. And if you’re caught driving a car without a valid third-party insurance cover, you may be penalised with a fine of ₹ 2,000 by the traffic cops.
Moreover, if your car gets involved in an accident during this period and causes damages to a third-party, you will have to bear the entire legal and financial liability out of your own pocket.
While an Own Damage (OD) cover is not mandatory, it is highly recommended for every car owner. It provides financial security to the vehicle against the damages caused by mishaps such as collision, theft, vandalism, fire, natural disasters etc.
If you don’t renew your OD cover in time, your car will get exposed to the financial risks and in case it meets with an accident, you may have to pay for the loss out of your own pocket.
No-claim bonus (NCB) is the benefit given by the insurance providers to the policyholders for every claim-free year. This benefit is given in the form of a discount at the time of policy renewal. If you fail to renew your policy within the due date, you stand a chance to lose your accumulated NCB. However, if you renew your policy within the maximum break-in period of 90 days, your NCB will be reinstated.
In Conclusion
Renewing your car insurance policy before the due date is very important. By failing to do so, you not only expose your car to certain financial risks but also can attract legal punishment. And if by any means, you forget to renew your car insurance in time, you must do so within the allowed break-in period, i.e. a maximum of 90 days from the policy expiry date.
Else, you may lose out on the NCB benefit and may have to get your car re-inspected by the insurer. If you’re a person who tend to forget the policy renewal date, you can set a reminder in your smartphone or sign up with your insurer to receive notifications about the renewal date through e-mails and SMS alerts.
With ICICI Lombard’s car insurance Policy, you can renew your policy online every time, without any hassles. Besides, we offer unique additional covers at nominal extra cost that can significantly boost the coverage of your car insurance policy.