Law

Vehicle Insurance Policies Must Be Renewed On Time: General Insurance Council

The Ministry of Road Transport & Highways’ notification extending the validity of all vehicle documents, including driver’s licenses, fitness certificates, and related documents, from February 2020 to December 31, 2020, has been clarified by the General Insurance Council to exclude insurance papers.

Motor insurance policies must be renewed as soon as possible, according to the GI Council, a group of insurance companies that serves as a representative. According to the Council, the MoRTH letter advising state governments on the validity of vehicle papers only applies to fitness certificates, permits, driving licenses, and registration certificates.

All policyholders are now informed that the letter sent by MoRTH does not apply to motor insurance policies, which must be renewed by the renewal date through the motor insurance online renewal process.

Reasons To Renew Your Auto Insurance Promptly Include The Following:

  • It Ensures That You Receive Ongoing Protection

A car insurance policy is crucial if you must provide financial protection for your vehicle. If your car is insured, you can also take advantage of other perks like cashless repairs, zero depreciation coverage, and no-claim bonuses. However, as long as your policy is in effect, you can obtain auto insurance coverage. *

  • To Obey Traffic Laws

Every vehicle in India must have a valid auto insurance policy, even if it only covers third parties, by the country’s motor vehicle laws. The implication is that if you drive your car on public roads, it must always be insured. You will only be covered if you timely renew your insurance.

  • Financial Liability Is Reduced

Your auto insurance will provide coverage if your vehicle is damaged or suffers losses. Your insurer would shoulder the financial responsibility if the damage were to your car or if you were injured or caused injury to another person. However, if you fail to renew your insurance coverage before it expires, your motor insurer will be under no obligation to pay for any financial liabilities associated with your vehicle.

  • No Claim Bonus Would Still Apply

The motor insurance company would reward a car owner with a no-claim bonus if he avoided making any claims on his auto insurance during the previous year. If you file no      claims during the policy year, you get a concession when you renew your insurance.* ##

  • It Guarantees That You Can Renew Without Any Hassle

If you timely renew your auto insurance, you are exempt from having your car inspected. When you try to get your auto insurance policy renewed after a while, your insurance company may view you as an unconcerned car owner, and you might have to undergo a vehicle inspection. Inspecting your vehicle would be pointless trouble, and as a result, it could lower your car’s insured value and increase the cost of your premium.

A motor insurance calculator is a convenient tool you can utilise online to check the coverage needed based on your requirements.

* Standard T&C Apply

## 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.

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