Importance of renewing your expired car insurance policy in India
It is important to renew your car insurance as it monetarily keeps you away from liabilities and unexpected circumstances.
Reasons to Renew Your Expired Insurance
Accidents are common and unpredictable. If you do have an accident after your plan has expired, you’d have to shell out a lot of money and incur huge financial loses.
Longer Car Insurance Renewal Procedure
The longer you wait to get your expired car insurance renewed, the tougher it will be to find an insurer willing to renew your policy. Besides that, you’ll also have to bear the charges of having your car surveyed.
No Claim Bonus
Are you familiar with the fact that a policy lapsed for more than 3 months could make you lose on your accrued NCB? Think about this, the no claim bonus raked up over four years could stack up to 45-50%.
Driving with an expired insurance policy
Be prepared to pay heavy fines.
Earlier, the Motor Vehicles Act, 1988 governed the road safety and traffic rules. Recently, the Government passed the Road Transport and Safety Bill 2014 to replace the Motor Vehicles Act, 1988. Among other changes, the Bill penalizes you heavily if you are caught driving without having a valid insurance cover.
Losses for damages caused to third party or property.
In an accident, if you unintentionally harm any person or surrounding property, you are liable to pay the loss incurred. This is called third party liability. Your car insurance mandatorily covers this third party liability and spares you the loss incurred. In the absence of a valid insurance cover, you would have to bear the losses incurred. If the person dies, your liability would be very high.
Face legal complications.
Besides the financial loss suffered in an accident which causes damage to a third party and/or self, you would also be entangled in legal complications if your car is found without a valid insurance cover or an expired car insurance policy. You would be penalized, get a challan and might even be imprisoned.