Don't Wait: Lockdown or No-Lockdown, Insure Your Motor Vehicle Before Expiry

If your car's insurance is expiring during the lockdown and you are procrastinating to get it renewed, then don’t. Though the government has given a relaxation, it is still advisable not to wait for your policy to expire and get it renewed at the earliest.

The Ministry of Finance had recently announced that the deadline for renewal of third-party insurance policies, which fall between March 25, 2020 to May 3, 2020, has been further extended till May 15, 2020 due to Coronavirus lockdown. The extension is specifically applicable for third-party insurance and not for comprehensive motor insurance. 

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So, what’s the difference between a third-party and comprehensive motor insurance policy:

Third-Party Motor Insurance: 

Third-party car insurance is the most basic, and legal form of car insurance policy one needs. It is mandatory as per The Motor Vehicles Act, 1988; and as the name suggests, it provides protection against damages and losses caused to a third-party due to your own car and it does not cover damages of your own car.  

Comprehensive Motor Insurance:

A comprehensive car insurance policy not only covers third-party liabilities and losses but also provides complete protection against damages caused to you and your own car due to an accident or any mishap on the road. It covers damages caused by natural disasters such as flood, fire, earthquake, theft, etc. A comprehensive policy provides extensive coverage, which can be further customized with add-ons. 

Even as you think you can not use your vehicle amidst the lockdown, you should still renew your comprehensive motor insurance policy or third-party insurance to protect yourself from unforeseen circumstances. 

It is to be noted once the deadline to renew a comprehensive insurance policy expires, even by a day, the policy will break. Not renewing your policy can have serious implications. The policy will lapse and you will have to undergo the hassle of inspection and premium rates might increase too. This means that instead of renewing your policy, you will need to buy a policy afresh.

Amidst the Coronavirus lockdown, it becomes all the more difficult to choose an offline process to renew your car insurance policy. You can renew it online via Policybazaar.com, which is quick and easy, just follow the steps below:

1. Enter the car number. The backend will automatically detect your car brand, model, variant, fuel type, and registration year.

2. Enter your Full Name, email, and mobile number.

3. Click on view prices.

4. Select the date of the expiry of your policy.

5. Select whether you made a claim in your existing policy or not (If No, then you will get a cumulative bonus on premium).

6. You will then see a webpage where various insurers and their premium rates will be shown.

7. On the same webpage, select your plan type on the top panel. Choose comprehensive/ standard insurance or third-party insurance option (whichever you want to renew).

8. Select your Insured Declared Value (IDV) in case you have a comprehensive insurance cover. IDV is the maximum sum assured fixed by the insurer which is provided on theft or total loss of the vehicle. 

If you are unable to calculate your IDV, you can select the option recommended IDV. It is important to choose IDV because the premium rates are decided accordingly by the insurer.

9. Choose the car insurance plan that you want to renew.

10. Select car registration date, existing policy type, whether car ownership changed in the last 12 months, does the car have external CNG/LPG kit and car ownership details. 

11. On the right side of the window, you will see the total premium that you will have to pay and click on the pay securely option. 

12. Enter your car details/UPI, net banking/wallet details, and click on Pay.

13. You can download a soft copy of your insurance policy immediately after payment.

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