Reports show that about 30-35% of four-wheeler owners in India fail to provide proper insurance papers for their vehicle. Even though the Motor Vehicles Act passed by the Government of India in 1988 mandates every car owner to buy a 3rd party car insurance policy, a lot many cars running on Indian roads are not yet insured.
Not having the car insured or the insurance renewed in time is subject to a fine of-
- 2000 (for first-time offenders).
- 4000 (for second-time or subsequent offenders).
Failing to have proper insurance documents deprives the 3rd party from substantial compensation. Considering this, the authorities have made punishments under the Act more stringent.
Also, insurers have been directed to make insurance renewal for cars as simple as possible to ensure that there are least defaulters. Being a first-time car owner, you might not be used to the procedure of car insurance renewal. Thus, you must keep a few points in mind while renewing the insurance policy.
Points to remember during car insurance renewal:
After the stipulated validity period of your car insurance policy, you will be required to update your plan to extend its validity. The expiry period is always pre-determined and specified by the insurer. Your insurance providing company might also notify you when the insurance policy’s expiry date is about to arrive. Here are the necessary tips you can utilise while renewing your vehicle insurance plan-
1. Know the type of policy you are purchasing
Car insurances are of 2 types – comprehensive and third-party liability. While the latter is a mandatory buy, to avail the former is upon your discretion. The primary difference between them is the coverage limit.
While a comprehensive 4 wheeler insurance plan provides compensation for the insurance-holder as well as the third-party individual/property involved, a third party insurance policy extends coverage only against liabilities arising from third party damage or injury.
2. Choose add-on benefits as required
Apart from extended general car insurance schemes, certain insurance-issuing companies also offer add-on features to their clients. For instance, Bajaj Finserv has numerous add-on covers that let you customise your insurance policy.
Individuals renewing their insurance plan must also compare the available add-on covers along with car insurance comparison. Some popular add-on offers are-
- Zero depreciation cost- Coverage under car insurance policies are subject to a depreciation charge. The amount is deducted from the total compensation amount you are liable to avail. Availing a zero depreciation cost add-on feature keeps your cover immune from such deductions. Hence, with this, you can claim the actual amount of coverage.
- Key replacement cover- In case you lose your car keys, insurers would provide you with a compensatory amount to meet the cost of key replacement. Cost of purchasing and fitting of new locks is also compensated.
3. Check whether the policy is easily transferable
While going for four wheeler insurance renewal, you are required to check the transfer procedure designed by your chosen insurer. In case you plan to sell your car shortly, you will have to transfer your insurance policy to the new owner.
You should also opt for a car insurance plan which includes benefits like a no-claim bonus even on insurance transfers.
4. Know the online benefits
You can not only buy car insurance online but also get them renewed online. Insurance plan providing companies run various offers and discounts on online renewals of four-wheeler insurance policies.
When your expiry date is about to arrive, you must visit the official website of the insurer to check the available discounts on insurance policy renewals for the best buy.
Insurance providing companies also notify the insurance-holders when their policy expiry date is about to arrive. The objective behind such services is to ensure no car owner fails to provide updated and valid documents of their car insurance policies. Examine your renewal policy wisely while considering the exclusions they have to make an informed decision.
