Saturday, February 23, 2013

Insurance Company Will Provide Cover : Why Policy Lapse?

Many peoples tend to ignore this important aspect. If you do not want to spend too much money, you should get at least a third party insurance done. With this, if you have an accident at least the damages to the other person's vehicle will be paid by the insurance company. The best thing to do while getting a car insurance policy; however, is to get a complete cover for your car. This kind of a comprehensive cover will include the damage to your own vehicle as well as the third party vehicle.

Unfortunately in India, the attitude towards insurance is very casual. People either forget to insure their vehicles or if they are insured they forget to pay the premiums of their car insurance policy on time. This is in spite of the fact that the insurance company sends several reminders through different media when your premium is due. However, people keep insurance premiums at the bottom of the list of their priority tasks. This is the reason that often they miss paying the premiums and as a result the policy lapses. Whereas, the fact is that if you buy car insurance, you should keep it running till the time you have the vehicle.

If a policy lapses:

• The insurance company gives some lee way when it comes to paying the premiums. Chances are that even if you do not pay the premium on time, the insurance company will provide cover for a week or so. however, a delay of more than that can result in the policy lapse.

• Once a policy lapses, you run the risk of driving the car without insurance cover and can end up with huge losses in case of an accident.

• If your policy lapses, you will still need to pay the same premium most of the time.

• The insurance company will photograph your vehicle again, in order to check for dents or paint loss and other issues with the vehicle.

• You will lose No-Claim Bonus (NCB).

• You cannot claim insurance for any existing problems in the car. That is why they take photographs.

• It usually takes around one week from the day of taking the photographs for you to get the renewed copy of your insurance policy.

Ensure payment of premium on time

If you have bought motor insurance, then you should make sure that you keep the policy running and pay the premiums on time. This will ensure your financial security in case the vehicle is involved in an accident and suffers significant damage. Nowadays, it has become very easy to keep a track of your premium due dates, especially when the insurance company reminds you so many times of the premium due date. At the same time, just like you can go for online car insurance, you can also pay your premiums online, which makes the process very simple.

On the other hand, if you are not satisfied with the existing insurance company, you can opt for another one. You can check the Internet for the premiums offered by different companies.

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