While every new vehicle has an insurance policy, most doesn’t show interest in renewing it after the first year. As per the new motor vehicle law, huge penalty will be levied along with jail term if you don’t have insurance for your vehicle. What are the ways to renew your policy to avoid such and what to do if the policy is not in force at present?
We are hearing everyday a lot of accidents resulting in deaths and injuries. Vehicles also tend to get damaged during such accidents. Insurance to a property totally depends on the owner but in order to have your vehicle on the road, insurance is a must. The primary rationale behind this is to compensate any loss of life, injuries or property damage caused by your vehicle. To get compensation to the damage caused to your vehicle, a comprehensive policy is needed. If you want compensation only to the damage caused to others, such a policy is caused third party insurance. Motor vehicle law mandates at least a third party insurance to your vehicle. The reason for this is to compensate any damage caused by the vehicle.
According to a survey conducted by the central government, 1.46 lakh people lost their lives in accidents in 2015, which is 5% more than 2014. The concerning fact is that most vehicles that are buzzing on the roads have no insurance, and most cases they have mandatory insurance for the first year and no renewals the following year. That is the reason why at least a third party insurance is made mandatory in our country. Apart from being illegal to travel without insurance on a vehicle and it is totally the responsibility of the owner to compensate any damage caused. This may sometimes amount to crores, so be careful. In case the owner is not in a position to pay the compensation, the victim is deprived of his right for compensation.
The central government is taking many steps to make stringent laws keeping in mind the safety on roads. The key aspect in this is motor vehicle amendment act 2016. Once this comes into force, breaching of this code may attract severe penalty or even jail. For example driving without license may attract fine up to 5000, drunk driving 10000, no seatbelt 1000 and driving with no insurance 1000 to 2000.
Is your policy not in force?
Always renew your motor insurance policy in time. the policy gets canceled even if one day is passed and you have to take a new policy then. There are some regulations for this. you have to apply afresh for such. The company checks the vehicle and in order to avoid all these hassles, always better to renew the policy on time. If you pay the premium after 90 days of expire of the existing policy, you will lose any no-claim bonus, which is another loss.
When you buy an used vehicle: While buying an used vehicle, always get to know if it has an insurance policy in effect, its value. If there is none, take it by applying for it with registration and transfer papers.
With stringent laws, it is necessary to take motor insurance and take a comprehensive policy if possible or at least a third party one and drive your vehicle without any concerns.
It is the responsibility of the owner to renew the insurance of his vehicle after the first year. Insurance regulatory and development association is working hard to raise awareness among people about this but most are giving it a deaf year and there are several easy ways to renew the policy before expiry.
Almost all insurance companies facilitate renewal online. Premiums of various insurance companies can be checked online in insurance aggregator website.
Insurance broker/agent: You can renew the policy by consulting the broker/agent you got your policy earlier.
Through banks: Many banks have agreements with general insurance companies, check if your nearest bank has such arrangements.
Mobile applications: The easiest way to renew your policy is through mobile applications of various companies.
Through dealers: There is opportunity to consult your vehicle dealer where you first got your insurance. Since most dealers have insurance agents available on hand, it is very easy to get your renewal.
Every two years….
Some companies provide longterm insurance policies for two-wheelers. Renewing for two to three years avoids hassle of every year renewal. If renewed for 3 years, rise in premium can be saved. New vehicle buyers can consider this.