Hyderabad: The motor insurance policy has to be renewed within the stipulated time by remitting the said premium. Because if an accident occurs just one minute after the due date, remember the vehicle is not covered by the policy. Forcing the motorist to bear all the expenses on his own. In addition, driving without insurance carries a fine of up to Rs 2,000 and imprisonment, too. Therefore, it is better not to drive an uninsured vehicle. On the other hand, insurers will lay a lot of conditions for renewing a lapsed policy. They will insist on vehicle inspection in person. It has to be done either by visiting an insurance company with the vehicle or allowing their representative to inspect at your place. Nowadays, insurance companies have allowed video inspections, too.
Read: 'Vehicle insurance policies have to renewed on or before due date'
Without overlooking the due date, renewing the policy is a must. If you had taken the policy through an agent, you need to follow up on him and complete the formalities. If the policy was bought online, visit the company website and click on the renewal option and extend the policy. Also if you are unhappy with the service of the present insurer, you can change to a new company. Browse the policy details and premium rates of various companies, before ticking the right one.
No claim bonus...
No Claim Bonus or NCB is a reward given by an insurance company to an insured for not raising any claim requests during a policy year. The NCB offers discounts ranging between 20% and 50% and is given to the insured while renewing a policy. The NCB discount is offered on the premium amount during renewal. This discount is transferable and can be transferred even if the policyholder buys a new vehicle. Insurers will give 90 days window to renew the existing policy and you will not forfeit the NCB benefit if renewed within that extra time. You can also avail 50% discount on the premium. So, it is better to renew the policy to pocket the NCB sum.
Before the due date...
Most people don't show much interest in vehicle insurance. Prompting them to skip the due date of renewal. This is the reason why many policies are getting lapsed. On one hand, insurance companies keep sending reminders about renewal, on the other, details of the policy are easily available on the company app. You should be alert to such reminders. By renewing the policy even one day before the due date, you can avoid unwanted situations, said Aditya Sharma, Chief Distribution Officer, Bajaj Allianz General Insurance
