You must know that a motor insurance coverage has a period of validity, and you must renew it before it expires. The possession of a motor insurance policy is required by Indian law, and timely renewal of that policy is equally crucial.
Reasons to renew your motor insurance without any delay include the following:
- It ensures that you have continued coverage
In the event that you must provide financial protection for your vehicle, having a motor insurance policy is crucial. When your motor is insured, you can also take advantage of other perks like cashless repairs, zero-depreciation coverage, and no-claim bonuses. *
As long as your policy is in effect, you can obtain motor insurance coverage. You must renew your motor insurance policy before it expires in order to maintain continuous coverage for your vehicle.
- To obey traffic laws
Every vehicle in India is required to carry a legal motor insurance coverage, even if it just covers third parties, by the country’s motor vehicle rules. The implication of this is that if you use your motor on public roads, it must always be insured. You won’t be covered if you don’t timely renew your insurance. If your motor insurance policy has expired, you are also breaking Indian traffic regulations.
- A financial liability is reduced
Your motor insurance provides coverage if your vehicle is destroyed or suffers any losses. Your insurance would shoulder the financial responsibility if your motor was damaged or if you were injured or caused harm to another person. However, if you fail to renew your insurance coverage before it expires, your motor insurer will be under no duty to pay for any financial liabilities associated with your vehicle.
- No claim bonus would still apply
The motor insurance firm would award a car owner with a no-claim bonus if the insured avoided making any claims on his motor insurance during the previous year. If you file any claim during the policy year, you get a concession when you renew your insurance. You risk losing no claim bonus if you don’t renew your policy for a period of more than 90 days after it expires. *
- It makes sure that you can renew without any hassle
If you renew your motor insurance timely, you are exempt from having your motor inspected. When you do your motor insurance renewal after a while, your insurance company may view you as an uncaring car owner, and you might have to undergo a vehicle check. The inspection of your vehicle would be pointless trouble, and as a result, it could lower the insured value of your vehicle and increase the cost of your premium. *
Conclusion
In light of the financial and legal repercussions, it is important to renew your motor insurance on time. So, when the time comes to renew your motor insurance, act quickly. Conveniently use a motor insurance calculator to calculate your renewal amount or if you wish to make any add-ons to your existing policy.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
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.
