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What To Do If Car Insurance Policy Lapses? Research Team | Posted On Friday, October 25,2019, 04:54 PM

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What To Do If Car Insurance Policy Lapses?



The car insurance plan has lapsed and you just don’t know what to do. Don’t panic. It’s not the end of the World. There are ways to renew a lapsed car insurance plan. Just don’t drive the car with a lapsed car insurance plan. After the Motor Vehicle Amended Act 2019, you land up with heavy fines and even a jail term on driving without third party liability motor insurance.

Forget about the rules. Just imagine if your car gets damaged in an accident. The cost of repairs can blow your savings away.

If you want to renew just the third-party liability motor insurance, it’s really easy. There is no inspection and the third party insurance plan is issued immediately. However, renewing a lapsed comprehensive car insurance plan is more complex. Let’s get an idea on how to renew lapsed car insurance plan.

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What To Do If Car Insurance Policy Lapses?​

Methods of Renewing Lapsed Car Insurance

You can renew lapsed car insurance plan through the online or the offline mode. The online mode is an easy, hassle-free way of renewing the lapsed car insurance plan.

Steps to Renew Lapsed Car Insurance Plan Online

STEP 1: Keep documents like the previous policy details and your vehicle registration number handy. Give details of any add-ons on car insurance plans.

STEP 2: You then log on to the official website of your insurer.

STEP 3: You enter car insurance policy details.

STEP 4: Make payments using debit or credit cards, internet or mobile banking and complete the transaction.

Just these 4 steps and a few clicks help renew lapsed car insurance plan online. The insurer emails the soft copy of renewed car insurance plan to the registered email ID.

See Also: How to File a Car Insurance Claim?

Renew Lapsed Car Insurance Plan Offline

This is the traditional way of renewing a lapsed car insurance plan. You can renew lapsed car insurance offline just by going to the insurer’s branch. Carry all documents related to the car insurance plan. As the car insurance policy has lapsed, the car is subject to inspection by the surveyor before renewal of car insurance.

Why Opt for Online Payment of Car Insurance?

When car insurance plan lapses, it is compulsory for your car to undergo a thorough inspection before renewal of the lapsed car insurance plan. If lapsed car insurance plan is renewed online, no car inspection is required.

Read the Fine Print Before Renewing Lapsed Car Insurance:

Minor dents and damages are ignored by insurers when evaluating the own damage proposal. The final decision rests with the insurer who makes the call based on underwriting policies. If the car has more than 4 minor dents, the policy proposal may be rejected.

Be careful when renewing a lapsed car insurance plan. A single crack on the windshield or one major crack could mean non renewal of lapsed car insurance. After the car insurance policy is issued, exclusions and other conditions are just like normal car insurance plans. Only the pre-existing damages which are recorded by the insurer during inspection and policy issuance are excluded. It’s wise to maintain the record of pictures/videos which were shared with the insurer, during the purchase of the plan.

See Also: Car Insurance In India - Policy, Insured Declared Value and Deductibles

Prevention is Better Than Cure

Never allow the motor insurance to lapse and avoid the hassles of renewing a lapsed car insurance plan. Not only could you land up with a hefty fine, you would also have to pay compensation if your car is involved in an accident and a third-party suffers damage or injury.

You must carefully study the car insurance policy documents to know the tenure of the own damage component. If you had opted for the third-party liability plan with three-year tenure and a one year own damage cover, you would be under the impression that the  own damage cover is also of 3 years. If your car lands up in an accident, the repairs could blow your savings away.

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