5 Steps To Take For A Lapsed Motor Insurance Policy

Subscribe to GoodReturns
For Quick Alerts
For Daily Alerts

    Motor Insurance along with third party insurance is mandatory in India when buying any vehicle. It is a must as it provides protection to the vehicle owner against damages and even to any third party involved.

    Motor Insurance policies are not a one time buy, but, essentially need to be renewed every year. Most individuals tend to ignore renewing their motor insurance policy on time.

    Most insurance companies do not offer a grace period for renewing your policy. This means you have to bear the consequences of untimely renewal.

    5 Steps To Take For A Lapsed Motor Insurance Policy

    Here is what you need to do if your insurance policy lapses. 

    1) Avoid Driving

    Avoid using your vehicle when the insurance is not active. In case of damage, during non-insurance period you will liable to pay huge damages on your vehicle as well as third party damages. The consequences could be grave if there is a death involved.

    2) Vehicle Inspection

    Once your decide on the insurance company you want to go with, you have to get an appointment for vehicle inspection. In case of the lapse of policy by even one day, the vehicle has to be inspected.
    Also, if the policy is allowed to lapse for more than 90 days, the accrued benefit of NCB (No Claim Bonus) is also not applicable.

    3) Vehicle Survey

    Your agent will visit your place and inspect the vehicle to check the vehicle condition. In case of any prior damage, there are chances that your insurance may get rejected or there maybe a higher premium that is applicable. There will also be some charges for the visit even if there is no damage.

    4) Buy Insurance immediately

    Once the inspection is done, buy the policy immediately as the inspection record is valid for few days depending on the insurance company. Most of the insurers will not allow to buy the policy online in case of lapsed policy.


    If the insurer is treating your request as a new one, there are chances that they may not consider pre-existing damage and can charge additionally to cover them.

    5) Premium and No claim Bonus

    Lapsed policy may attract higher premiums and there are changes that your insurer may reduce or cancel the no claim bonus.

    No Claim Bonus (NCB) is the benefit accumulated for not making any claims during the previous policy period.


    If you had paid the premium on or before the due date, all these would have not mattered. These days many insurance companies do send reminder messages and e-mails. Do not neglect the payment and pay the premium on time.


    Read more about: insurance motor insurance
    Story first published: Monday, October 12, 2015, 11:25 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more