Hyderabad: You must have vehicle insurance either to ride a bike or drive a four-wheeler. Therefore, an insurance policy has been mandatory when buying a new vehicle. But, many did not show interest in renewing it and tend to say let’s see when someone asks. This lethargic attitude may land you in trouble as even if the accident happens one minute after the expiry of the vehicle insurance also insurance does not apply. Therefore, keeping in view the problems that would arise on the expiry of the insurance you should pay the premium of the vehicle insurance policy and renew it on time under any circumstances.
Assume that you met with an accident and unfortunately you forgot to renew your insurance, then you have to bear the loss in addition, driving without insurance carries a fine of up to Rs 2,000 and imprisonment. Therefore, it is better not to drive an uninsured vehicle. Insurers, on the other hand, have certain rules for renewing the insurance of vehicles by checking the vehicle directly. Or else, you can go to the insurance companies and show the vehicle or a representative of the company concerned will come and check the vehicle. Apart from that Insurance companies are conducting video inspections.
Read: 'Vehicle insurance policies have to be renewed on or before due date'
As soon as you notice that your insurance policy has expired, you should contact the insurance company and renew it. If you take the policy through an agent you can contact them and complete the process. If you buy a policy online, you can easily go to the insurance company's website and renew the policy. If you do not like the insurance company that you took out the policy in the past you may switch over to another company. Examine the insurance premiums and services of all companies and take the right decision.
No claim bonus
No Claim Bonus (NCB) is crucial for a full-fledged auto insurance policy. This helps in reducing the premium. The NCB covers up to 20% per unclaimed year. It gradually increases that is up to 50 per cent. The insurance does not apply after the expiry of the policy. However, insurers allow for the policy renewal within 90 days and you will not lose the NCB benefit if the policy is renewed during that period. Since the premium amount can be reduced by up to 50 per cent, the policy should be continued without depriving the NCB of profit.
Before the expiry date...
Most people do not show interest in insurance policies. With this, they forget to renew their policies. These are the main reasons why many policies are being cancelled. Though insurance companies inform the vehicle owners of the renewal of their insurance, they fail to renew it. Paying the premium for the policy at least one day before the due date can avoid unnecessary hassles. So, wake up from slumber and pay a premium on time, says Aditya Sharma, Chief Distribution Officer, Bajaj Allianz General Insurance.
