According to the Motor Vehicle’s Act, 1988, every car plying on the road must have an active insurance policy with it. While buying comprehensive insurance cover is optional, having third-party policy coverage is mandatory. In case your car does not have third-party insurance coverage, you are liable to pay penalties. Recently, as per the amendments in the Act, the penalty amount has also been increased.
Having an active policy is not a challenging task. It only requires you to pay the annual premiums towards your four-wheeler insurance timely online or offline. However, many people fail to do this, and their policy gets lapsed.
You might have thought you could renew your car insurance policy whenever possible as per your convenience, which is not true. A lapsed four-wheeler insurance policy can have negative consequences in store for you.
Here are some of the benefits you will enjoy if you don’t let your four-wheeler insurance policy lapse –
1. No Worries of Repurchasing Insurance
If you fail to renew your four-wheeler insurance online or offline on time, then the insurer gives you a grace period for renewal. However, if you still don’t get your policy renewed, then it will lapse. After this, you will have to purchase new four-wheeler insurance online from either the same insurer or a new insurer. This means that you will have to go through the car survey and other aspects of buying car insurance once again.
You can avoid these hassles by renewing your policy on time at the end of its tenure.
2. Receive No Claim Benefits
In case you do not file a claim during the year, your insurer will provide you with the benefit of No Claim Bonus or NCB. This NCB gets deducted from your policy renewal premium, which reduces your payment obligation.
If you fail to renew your policy and it gets lapsed, you will lose the NCB. So, to receive this bonus, you must make sure your four-wheeler insurance policy does not expire.
3. Minimum Risk of Financial Burden
In case of an active policy status, if your car meets with an accident, then you will be qualified to receive financial support from the insurer. Whether you incur a third-party liability or get your vehicle damaged, your losses will be compensated as per your policy terms. You will be at the minimum risk of facing a financial burden.
To further reduce your liabilities, reputable insurers like Tata AIG provide add-on covers, like compensation for the repair of fibre, glass and rubber parts, loss of personal belongings, daily allowance, consumable expenses and roadside assistance.
In case of a lapsed policy, the risk of facing a financial burden increases in case of accidents.
4. Higher Premium
Failing to pay your four wheeler insurance online or otherwise can make your policy lapse. Not just that, you will be considered a high-risk person in the eyes of insurers while buying a new policy later.
Whether you choose the same insurer or another one, the chances are high that you will be asked to pay a higher insurance premium than before. This is mainly because of the gap between the policy term, which is considered a vital factor by all insurance providers.
So, get your four-wheeler insurance renewed online timely. It will build a positive premium payment history, and you continue getting the insurance benefits.
Renew Four-Wheeler Insurance Online
With everything going digital, it has become easier to manage your insurance policy online. You can even pay the premium online, along with checking your policy status from time to time. Maintaining an active policy status is not as challenging as it may seem. Just go online and make the premium payments to enjoy all the benefits that come with an active four-wheeler insurance policy.