Finance

Here’s All You Need to Know About Renewing a Motor Insurance Cover

The recent amendment to the Motor Vehicles Act has seen a steep rise in the penalties. It has imposed hefty penalties on offenders. One such offence that has grabbed attention is driving without a valid copy of insurance.

An already hefty penalty of ₹ 2,000 for first-time offenders doubles up to ₹ 4,000. This large sum can be simply avoided by ensuring you undertake your vehicle insurance renewalin time.

While renewing your insurance in time is a better option, such penalties can be avoided as most third-party insurance covers are cheaper than the penalties in case of two-wheelers. With third-party insurance cover being a legal requirement to even long term insurance covers available as an alternative, one can select a plan that suits their needs.

The Process of Renewals

Renewing your third-party insurance cover is straightforward. There is not much elaborate process and no requirement of inspection to your vehicle. Simply approach your insurance company and take the renewal route. With the ease of availing insurance, you can purchase and renew your motor insurance online too.

At the same time, renewing a comprehensive insurance cover is slightly more elaborate. But the picture is changing in recent years. Mandatory inspection is limited only for certain scenarios. Self-inspection by the policyholder is one of the methods of renewal of your insurance policy. In case of renewal after 90 days after the lapse of your policy, you need not need an inspection.

Moreover, any accrued benefit like the no claim bonus shall be available at the next renewal of your policy. For renewals after 90 days, means losing out on the policy benefits. Also, any add-ons can be denied depending on each insurance company.

Why is renewal important?

  • If you do not have a motor insurance cover, you risk being penalised. The revised penalty is heft and would prove to be heavy on your pocket. This penalty amount is doubled in case of repeated offenders. Hence, timely renewal viaquick & hassle-free mediums such as the internet for car / two wheeler insurance renewal online is critical
  • Having a motor insurance policy saves you from legal complications. If there is any accident or damage to the vehicle, the insurance policy will provide cover and take care of it, and not let you go into a financial crunch.
  • Policy benefits like the no claim are awarded for every claim-free policy year. In case of timely renewal, you can carry forward this benefit at the time of renewal. Moreover, these benefits can also be transferred to a different insurance company in case you do not wish to continue with your existing insurer.
  • If your insurance policy lapses, the re-activation process is tedious and time-consuming and you have to complete all the formalities as needed during the time of a new purchase. Moreover, you lose any renewal benefits, and the premium is restored to its original amount.

In conclusion, make sure you renew your motor insurance policy on time. Whether personal bike / car insurance renewal, come benefits that are more substantial than buying a new policy. To avoid your insurance policy from lapsing and an increased premium, renewal of your motor insurance is crucial. The renewal process is much easier when compared to buying a new or reinstating your motor policy.

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