Driving a car without a valid car insurance policy is a punishable offense, according to the Indian Motor Laws’ norms, wherein strict actions, and fines are also imposed on the driver.

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Hence, it is always better to consider renewing the motor insurance policy on time to avoid any financial and legal issues.

Insurance companies usually provide a grace period of 15 to 30 days from the due date. Under the same, the policyholder can make a premium payment without coverage lapsing.

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According to Naval Goel, chief executive officer, and founder of PolicyX, if a person misses the grace period as well, then he/she have to buy a fresh car insurance policy.

In order to renew the policy, Sajja Praveen Chowdary, head-motor insurance, Policybazaar advises policyholders to inform the insurer after receiving an update about the motor insurance policy’s expiry.

"Once the insurance company is informed, an appointment would be fixed for the survey of the vehicle. The surveyor will inspect the car and see if there are any pre-existing damages," he explains.

Once the car inspection is done and recommended, the policyholder will receive the payment link for the renewal of the expired policy.

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"At the time of renewal, the policyholder can simply renew the existing policy or choose for an enhanced cover as per the requirements. If any pre-existing damages are found significant, the policyholder may not be eligible for the renewal of the expired car insurance policy," opines Ankit Agarwal, managing director, Alankit Ltd.

There are chances that the insurer would set a fixed deductible, as Chowdary adds, on the damage and would be charged to the insured during the further claims.

"During renewal, policyholders can also switch to another insurer if they are not happy with the current insurer. If they are planning to switch between insurers, they should look for an insurer that offers better services and enhanced coverage on the vehicle," illustrates Chowdary.

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First Published:Oct 30, 2020 7:37 PM IST