Renewing your motor insurance coverage on time is vital to cushion each your self and your car within the occasion of unexpected incidents. If you happen to meet with an accident when your coverage has expired, the insurer wouldn’t be liable to pay the insurance coverage declare — which implies that you would need to bear your entire value of harm.

Apart from, in line with the Motor Autos Act, 2019, third-party motor protection is obligatory in India. Driving your car and not using a third-party cowl might appeal to a superb of Rs 2,000-Rs 4,000 and even result in imprisonment of as much as three months.

“One other vital factor to bear in mind is the lack of no declare bonus (NCB). If you happen to fail to resume your coverage as much as 90 days of coverage expiry, you’ll lose out on the NCB supplied by the insurer. The NCB low cost helps in decreasing your premium by 20-50 p.c. Additionally, if there’s a lengthy break in your coverage, insurers in some circumstances might refuse to resume the insurance coverage coverage or impose an enormous penalty or superb,” Kunal Jha, Head at Motor Product and Actuarial, Digit Insurance coverage, instructed CNBC-TV18.com.