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Before renewal, your vehicle is inspected. The inspector checks each and every part of the car to assess any prevailing conditions that could lead to consequential damages. Based on its condition, the survey team recommends renewing your insurance policy and providing coverage. If your car is already in a very bad shape, the insurer may refrain from insuring it unless you first get the repairs done.
There is no grace period for renewal. Once it’s expired, it’s just expired and has to be renewed. Once your policy is lapsed you do get 90 days in which if you renew the policy, you can still retain your accumalted No-Claim Bonus. Post the 90 days, you lose out on NCB. The inspection is valid only for 24 hours. Once the vehicle is inspected, within that time period, you need to buy the policy.
What documents do I need to renew my policy?
If you are renewing your policy offline, then you require Registration Certificate (RC) copy and if you want to avail NCB, then you also need the NCB retention letter. However, for car insurance renewal online, you do not require to submit any documents. You can simply renew your policy directly online by providing inputs such as Car model number, Car RTO registration number, and Previous policy expiry details.
Since, the insurance company already has your documents, you don’t need any additional documents.
Do I get discounts for timely car insurance renewal online?
This entirely depends from insurer-to-insurer. Sometimes, insurance companies reward prompt payments with a maximum discount that is levied on your policy at renewal. They value customer loyalty and don’t hesitate to reward those who renew their policies before it expires.
It can be as high as even 50%-60%. So if you let your policy expire, there are high chances of you losing this discount!
Would I get No-Claim Bonus if I renew my policy once it has lapsed?
Post the grace period (which happens to be 90 days specially allowed for renewal of an expired policy), the No Claims Bonus (NCB) discount is snatched out! In fact, it could be such a huge loss especially if you haven’t made a claim in the past 3 – 4 years.
Think about it! You took so much effort to save up this discount by driving cautiously. Would you want to let it go waste and start all over again? No, right?
You not only pose a threat to your vehicle that you purchased with your hard-earned money but also may end up losing a lot in terms of premium.
Will my Insured Declared Value (IDV) change at the time of car insurance renewal?
Yes it will be lowered by approximately 5 – 10%. Insured Declared Value is the maximum Sum Assured that is fixed by the insurance company. It is provided on theft or total loss of vehicle. In short, IDV is the current market value of the vehicle and is compensated to the policyholder in case of total loss of vehicle. The IDV is calculated as manufacturer’s listed selling price minus the depreciation. Since the value of the vehicle gets depreciated, year-on-year basis, the IDV also reduces.
This is the depreciation schedule:
|Age Of Vehicle||% Of Depreciation For Calculating IDV|
|Up to 6 Months||5%|
|6 Months to 1 Year||15%|
|1 - 2 Years||20%|
|2 - 3 Years||30%|
|3 - 4 Years||40%|
|4 - 5 Years||50%|
Will my No-Claim Bonus (NCB) get transferred if I want to change my insurer on renewal?
If you switch insurers before the end of the year, then if you haven’t made any claim, you won’t receive any NCB for that year. However, once you complete an entire claim-free year, then on renewal, if you change the insurer, you can still avail the NCB.
All you have to do is produce proof of the NCB earned by way of received renewal notice from the current insurer. If you haven’t received it, you can call up the insurer and ask them to send it to you.
Another way of dealing with this is producing your original, expiring policy along with a certification that you have lodged for no claims on the expiring policy.
For this, the proof can be in the form of a renewal notice or a letter confirming the NCB entitlement from the previous insurer.