Purchasing a car insurance policy online is paramount in India as it is mandated by law. It is equally imperative to renew car insurance on time to maintain an active policy and to protect you from financial setbacks. Once the car insurance policy expires, the insurance company's guarantee to cover the car becomes null and void. You won’t be able to file a claim for an accident, and if you take out your uninsured car on the road, you may invite a heavy penalty.
Renewing your car insurance promptly is critical to making sure everything runs smoothly. A valid car insurance policy lasts one year or more, after which the policyholder must renew it before the expiration date.
The Grace Period
Despite several reminders, if you still don’t get your car insurance renewed, you are given a grace period (generally of 90 days) which allows you to renew the contract. There are no serious consequences as imposed by the insurers, but it is advised not to drive your car during the period. Your NCB remains intact, the insurer cannot raise the premium, and your vehicle doesn’t need an inspection in this case.
During the grace period, your car isn’t insured, but this can be treated as a warning period, after which your policy will be considered a new car insurance policy.
Failure to insure your car within the 90-day grace period will result in the lapse of your existing car insurance online plan and forfeiture of the accrued NCB if any. This increases the premium, and you also face the risk of being stopped by the police, which results in fines. There may also be legal consequences if you're in an accident that damages life or property.
The Consequences of an Expired Car Insurance Online Document
There are several risks attached to expired car insurance.
Policy Lapse
Failure to renew your car insurance plan will cause your existing policy to lapse, which means the entire premium you paid to date and the NCB you may have earned, gets wasted. You will have to re-initiate the entire process of purchasing a fresh policy and go through the procedure of form filling, documentation, verification, and inspection.
No coverage
No accidental claims will be entertained, and the car insurance company will not provide any coverage. For any damage, you may have to bear the full cost. It is therefore important to renew your car insurance in good time.
Legal matters
Legally, you are not allowed to drive without a valid car insurance policy in India. If caught driving a car without insurance, you may have problems with the police. It is a crime that can lead to penalties. In the worst case, you could even end up being imprisoned. You may have to bear the penalty of INR 2000 if found driving without a valid car insurance plan or imprisonment up to three months
A longer renewal process
It may take longer to renew your subscription as you won’t be able to renew the policy until a formal inspection is conducted. You would also need to go through the inspection process, which can be time-consuming and tedious.
Read more - 3 Easy Steps to Kill Nearly-Boring Car Insurance Renewal Process
Loss of No-Claim Bonus (NCB)
The NCB reimbursement is a benefit provided if you don’t file any claim during the period of insurance. It can go up to 50% if no claim is made for five consecutive years. After five years, the discount stops at 50% until a car insurance claim is made. You lose this privilege if your policy expires.
How Do I Renew Expired Car Insurance?
You must follow the steps below:
Step 1: You must renew your policy online and make a payment in accordance with the specifications of your car and other necessary details.
Step 2: The car inspection is mandatory to renew your car insurance online, especially when the grace period has expired too. It can be a self-inspection or a third-party inspection.
Step 3: In the case of a self-inspection, you will do a video inspection and submit it to the insurer. Otherwise, an assessor will be appointed to inspect any kind of damage to the vehicle. The car insurance renewal depends on the report submitted by the inspector.
Step 4: Once the inspection is complete, your policy will be issued to you.
Read more - How to Renew Car Insurance Online?
Conclusion
It is possible to renew the expired car insurance during the grace period. The problem starts when the grace period also expires. You would have to take your car insurance policy renewal almost like a completely new car insurance purchase. Driving without car insurance will result in a minimum fine of INR 2,000, increasing to INR 4,000 for a subsequent offence. You also lose out on several benefits and must go through a rigorous inspection procedure. Avoiding the hassle and renewing your car insurance on time is recommended.
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