Serious consequences can result from a loss in automobile insurance coverage, and more often than not, you, the policyholder, are left to suffer the brunt of it. Think about a circumstance that occurs frequently. Without your fault, you are engaged in an accident with a car whose insurance has expired. As a result, you may very possibly be held accountable for the incident and face legal action.
The results of a lapsed insurance.
While there are situations in which it is possible to really forget to renew the motor insurance premium, some car owners fail to do so on purpose in order to save a few hundred rupees on the cost. You put yourself at risk of financial responsibility for any necessary repairs as a result of the process. More crucially, the owner of the vehicle is now liable for paying any damages to the surviving family members of anyone killed in an accident. Thirdly, you forfeit any accrued benefits (No-Claim Bonus). *
Lose out on accrued advantages (No-Claim Bonus)
NCB, which can reach 50% for a consistent track record of no claims, is the concession you receive on the vehicle’s premiums for each year without filing a claim. If your car is left uninsured for longer than 90 days, you will forfeit any collected NCB benefits. Additionally, if you were to buy a new car during the procedure, you would not be able to transfer the NCB to it. A newer, better-end vehicle will have a much greater premium than an older one.
Time-consuming
It takes time and effort to reinstate a lapsed policy because you have to go through the process of purchasing a new auto insurance policy. Having said that, the procedure of applying for third-party car insurance coverage is not very challenging, and an insurance provider will still offer the policy if you take a hiatus. The process will take a little bit longer if you choose comprehensive coverage, which is the most popular type of insurance. However, all of this can be managed on a bajaj allianz car insurance app.
High levels of risk
When applying for an updated insurance policy from a different company, you are viewed as a high-risk individual if you allow your auto insurance to lapse. This is because there is a lapse in the duration of the policy, and the insurance company does not take it lightly. You would then have to pay a larger premium than you had initially.
If a comprehensive motor insurance policy that has expired needs to be renewed, a new proposal form must be filled out, just like when insuring a new car. Additionally, the insurance provider must evaluate your car immediately. The check is carried out to record any previous car damage. Even if the insurance provider chooses to insure the vehicle in the future, these damages won’t be covered.
It is advisable to renew on time because there are numerous losses associated with letting your auto insurance lapse and difficulties in renewing a lapsed policy. You can use a quick car insurance app for faster processing. These days, insurance companies send emails and SMS alerts to customers informing them of policy renewal. Policy renewal through mobile or online is a straightforward process with technology at your fingertips. Another advantage of renewing your car insurance online is that you’ll get your digitally signed policy right away, which you can access from an instant car insurance app.
It is crucial that you keep your vehicle insurance policy active in this day and age, when it is possible to do so online, receive reminders, manage it on a bajaj allianz car insurance app and set up auto-deduction of the payment from your account.
* 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.