Buying a vehicle requires compliance of registration, PUC and insurance. No vehicle owner can bypass these requirements. Although registration is managed by auto dealers, the insurance is something you need to personally look after.
The law makes it mandatory for all vehicle owners to purchase motor insurance coverage. These insurance plans help cover the losses that may be caused to third person or even for your vehicle.But it may happen that you forget to renew your policy on time. At these times, there is a break in the coverage of your vehicle insurance. This article highlights some myths that surround the break in your motor insurance coverage. Let’s have a look –
Myth #1: Vehicle insurance renewal is not possible if there is abreakin coverage
A major myth concerning the vehicle insurance renewal is a break in policy coverage cannot be renewed. You need to buy a fresh insurance coverage. The truth, however, is far from this reality. When there is a gap between two policies tenures, it is possible to renew the earlier plan with all its benefits. But in some cases, a few of those benefits are forgone if the renewal is done after a specified duration, for instance NCB.You can visit the official website of IRDAI for further details.
Myth #2: Take-over of compulsory deductibles
Deductibles are that amount which you need to pay before the insurance coverage kicks in. These deductibles are classified into compulsory and voluntary ones. Compulsory, as the name suggests, is mandatory for all motor insurance policies while a voluntary deductible can be purchased in addition to it. If there is a break in the policy coverage, the misconception states the policyholders need to take over all the deductibles, however that is not the truth. Only the mandatory deductible is required to be paid during a claim and voluntary, if opted for. * Standard T&C Apply
Myth #3: Mandatory inspection of vehicles
For all gaps in policies, the myth states a mandatory inspection is required for it. But it depends on the insurance company’s terms and the types of vehicle. At renewal, when you buy bike insurance online, some insurers may not require the vehicle to be reinspected, however, you must have all necessary vehicle documents. But the same cannot be said for car insurance. So, when you buy car insurance online after a break in coverage, the inspection is carried out for dents, scratches or any modification too. Only after this, the policy is renewed.
Myth #4: NCB benefits are no longer available
No-claim bonus or NCB is the benefit that insurance companies pass on to the policyholder, i.e. you, when a policy is renewed without any claims during the previous policy tenure. But if there is a delay in renewing coverage before its expiry, these no-claim benefits are no longer available if renewed beyond 90 days. Thus, the above stated misconception is partially true, but only after a period of 90 days. So, if you renew the policy within a week of its expiry, you can avail these benefits at renewal thereby lowering your premium. You can visit the official website of IRDAI for further details.
With some of the misconceptions surrounding break-in insurance coverage cleared, now you can make a prudent choice of insurance policy even after your coverage ends. Also remember, insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.