the risks of riding a car with a lapsed policy

If you own a vehicle, it’s obligatory to have a third-part insurance cover under the motor vehicles act. Riding an uninsured car will entail a fine of `2,000 for the primary offence or imprisonment of up to 3 months. The amount of the fine doubles for every repeat offence. In addition to this legal component, there are many other elements that makes it vital on your vehicle to be insured.

In case of an coincidence, the insurer will not settle any declare in case of a lapsed policy either for own-damage or an damage to a third-party, where the liability can be limitless. It will not pay any personal accident cover for hospital bills. Damage to the vehicle due to natural calamities like a hurricane or earthquake will no longer be covered either. Even transfer of vehicle registration or termination of hypothecation from registration certificate after vehicle loan closure can’t be completed in case of a lapsed motor insurance policy.

Renewing a lapsed coverage

It’s far crucial to renew your vehicle  coverage before the due date. Do no longer ignore the renewal reminders sent with the aid of the insurance agencies one month in advance thru sms or mail. Renew the policy online through net banking or debit/credit card or by means of losing a cheque on the department office of the insurer.

Inspection of the car

In case your motor insurance has lapsed, it will take a longer time to renew the coverage because the coverage firm will do an inspection of the car. This procedure can be time-ingesting and you’ll have to pay the inspection expenses. Maintain all the files ready for the inspection which include beyond claims, if any.In case of minor damages/dents, the insurer will reduce the Insured Declared Value after the inspection and set the premium accordingly. The car survey certificate is legitimate for no longer more than 24 hours, so make certain you post all of the files on time.

Rakesh goyal, director, probus insurance, says, “Renewing your motor policy on time helps you to avoid the hassles of paying higher premiums which are otherwise charged if your policy gets lapsed.”

Loss of no claim bonus

A break in the policy might imply that the insured will lose no claim bonus (ncb) amassed for not having raised any claims at some point of the coverage year. This bonus may be availed at the same time as you renew your policy on time. The ncb discount is 15-20% for the first claim-free yr, and will increase up to 50%.