Well as is the case majority of the Indian workforce given the current pandemic crisis is still working from home plus unnecessary travel is also being avoided, so there could be a high possibility that you considering minimal usage of your vehicle might have postponed renewal of your motor insurance policy.
Here we list out reasons why you should renew your motor insurance policy on time:
1. Third party cover is mandatory as per law:
Even if you have to use your vehicle minimally, you need to have at least the mandatory third-party cover which covers for any loss or damage done to the third-party in case of an accident. And not having such a policy could mean a heavy liability for you in case if you are caught.
2. Will not be able to capitalize on the No-claim bonus element after the specified time passes from the renewal date:
There are cases where no insurance claim has been made for last several years and in such conditions NCB accumulates which can be up to 50% of the own damage premium and in case a period of 3 month from the renewal date passes, you will not be able to tap this benefit.
3. Higher insurance cost:
For motor insurance policies that are no longer running, some of the insurers charge high cost and even may ask of inspection of the vehicle in case one wishes to buy comprehensive cover. And in case if damages are found, insurer will refrain from covering them.
Pointers To Note On Motor Insurance Policy Renewal
Now as you know why you should initiate the process in fact ahead of the deadline or expiry date, here we list out pointers to note when making renewal of your motor insurance policy:
1. Compare premium rates from across insurers and you may be able to get the best rate from the insurer's direct channel itself.
2. Take a cover of an apt amount which in insurance parlance is based on the IDV. IDV for the same vehicle can be different across insurance companies. Herein what is important is that you should not settle for a lower premium option which rather offers you a reduced IDV.
3. Also do not give in to unnecessary add-ons.