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Why is it crucial to renew your car insurance policy before expiry

Published: 30th March 2021 03:46 PM  |   Last Updated: 05th April 2021 11:23 AM   |  A+A-

Image Credit: Bajaj Allianz General Insurance

If you're someone who made the decision to spend a few lakh rupees to get the car of your choice, you'd have also made the decision to spend a few thousand rupees to ensure the car doesn't push you into spending a bomb on it in case of an accident.

However, when it comes to the renewal of insurance, many car owners fail to do so. Around 60 percent of vehicles in our country are uninsured and this huge percentage of uninsured vehicles is even a bigger issue considering that over 5 lakh accidents get reported in India every year with over 1.5 lakh deaths. Moreover, as per the latest figures released by the National Crime Records Bureau, almost 2.5 lakh vehicles are stolen in India each year out of which only around 25 percent are recovered[1].

Importance of Insurance

Buying a comprehensive car insurance online can protect you from a financial setback if you are at the receiving end of these statistics. A right car insurance policy not only covers the cost of repairs in case your vehicle is involved in an accident, it also protects you from financial and legal hardships. Moreover, a comprehensive car cover also protects you from financial losses due to vehicle theft, natural and manmade disasters, and even mechanical breakdowns.

Of course motor insurance in India is also mandatory as per the Motor Vehicles Act. And regardless of the insurance company that you buy your car or two-wheeler insurance from, it needs to be renewed at regular intervals. During the renewal, you can choose to continue with your current insurer, or switch to another insurer that caters to your requirements better.

With online facilities, the renewal process is now extremely convenient and streamlined. Renewing insurance online is quite easy and in fact, is a time-saving process as you don't have to contact an agent or visit the insurance company office. Renewing your motor insurance before expiry will keep you and your vehicle protected at all times.

Here’s why you should renew your car insurance policy before expiry:

1. If you do not renew – you’re breaking the law!

The first and the foremost reason to renew your car insurance on time is to abide by the Motor Vehicles Act, 1988. Under this law, an individual found driving a vehicle without valid insurance can be fined Rs 2,000 for the first offence and Rs 4,000 for a subsequent offence. Moreover, you may even face imprisonment up to three months. Whether your four-wheeler is on the road or off it, it has to be insured at least with a third party car insurance policy.

2. Lapse of the No Claim Bonus (NCB)

We know that one of the benefits of car insurance is that the insurer is liable to pay for any damages incurred during the policy tenure, but there is also a reward for the responsible drivers who have managed to keep their car safe for a said policy year. This reward comes in the form of NCB, which is a concession on the premium paid during comprehensive car insurance renewal.

If the car owner has not made a claim during the term of the policy period, he/she is entitled to an NCB by the insurance company, which can go up to even 50 percent of the annual premium. However, if the insurance expires, there is a possibility of a lapse of the NCB. To reap the benefits of NCB, it is mandatory to renew the car insurance policy well in time.

3. Rejection of a claim

Due to the lockdown and the pandemic at large, your car might be in limited use but that does not alter the possibility of an uncertainty – be it due to an unfortunate accident or even a tree falling on the car while it is parked. You cannot foresee a mishap, and in such times car insurance acts as a shield. Renewal of the policy is extremely important if you would want to make a claim. If the car insurance is not renewed and you ask for a claim after its expiry, your claim will be rejected without any further investigations.

4. Theft, vandalism and other threats

Theft is one of the major crimes in India and unfortunately vehicle theft is on a rise. Did you know that about 125 cars are stolen per day in Delhi alone? Across the nation, there are 2.5 lakh cases reported of car thefts every year. With such a rising crime rate, car insurance is highly required. Insurance companies also protect you financially against vehicle theft as long as your comprehensive insurance policy is valid.

Vandalism - the act of deliberate damage to public or private property is also common in our country. The cars parked in unsecured colonies or at public properties can become an easy target for the mob or miscreants. Another threat to your car is excess heat that can lead to self-damaging of the car. Insurance can protect your car from these threats and cover the expenses or losses incurred. So, it is crucial that you safeguard your car against these possibilities by renewing your car insurance policy on time so that it never lapses and your car is always protected.

Choose the right insurance company

Other than understanding the importance of insurance, it is also crucial that you choose a reliable service-provider. One of the most trusted insurers that you can opt for is Bajaj Allianz General Insurance.

Along with online purchase and car insurance renewal facility, Bajaj Allianz ensures flexible and cashless claim settlement at over 4,000 garages across the nation. Just punch in your pin code and find the nearest garage. With one of the highest claim settlement ratio in the country, Bajaj Allianz also provides a 24x7 call and roadside assistance add-on, at any time of the day. The best part is if you switch your insurer to Bajaj Allianz, it allows the transfer of No Claim Bonus up to 50 percent based on previous policy details. This ensures that you don’t end up losing your NCB from your previous insurer.

Taking precautions and maintaining social distancing is the need of the hour but something as necessary as a car insurance renewal should not be put on hold. The easiest and the most hassle-free way to renew the policy is online. You can evaluate your quote with the car insurance premium calculator on the Bajaj Allianz website and pay online. It is safe, quick and easy! Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Disclaimer: This content has been distributed by Bajaj Allianz General Insurance. No TNIE journalist is involved in the creation of this content.

Source: 
[1] https://ncrb.gov.in/sites/default/files/CII%202019%20Volume%203.pdf


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