In India, you must have a car insurance policy. Once your paperwork is in place, you can drive around absolutely carefree. But your car insurance could become invalid in a few situations. If this happens, you will lose your insurance coverage, and any claims you file will get rejected. Let’s look at why your vehicle insurance policy could be invalid.
Reasons Why Car Insurance Policy Could Be Invalid
1. Unpaid Premium
You may get caught up in work and forget to renew your vehicle insurance policy before the due date. Once the validity of your existing policy runs out, you no longer enjoy the protection offered by your insurance policy. If you try to file a claim, it will get rejected since the policy no longer exists. Always check your car insurance validity and renew your insurance plan before the due date.
2. Modified Vehicle
If you make any modifications to your vehicle, it could change how your car functions and behaves. You must report all changes to your insurance company in advance. The insurance company may then revise your policy to include the modifications and how they impact your car’s performance. If your vehicle gets damaged due to changes you have not reported, your car insurance policy could become invalid.
3. Illegal Activities
Your car insurance validity depends on your ability to follow road regulations. If you get caught driving under the influence or fleeing an accident site, your vehicle insurance policy will become invalid. You should always stay on the right side of the law and follow road rules when behind the wheel.
4. Providing False Information
When you apply for your car insurance policy, you must provide accurate information about your driving history and the vehicle. If your insurance company finds out that you lied or knowingly provided false information, they will invalidate your policy immediately.
5. Using a Personal Vehicle for Business
In India, there are separate insurance policies for personal and commercial vehicles. If you buy a car with an individual car insurance policy, you cannot use it for your business. If your vehicle gets damaged while used for business purposes, your insurance cover will not entertain any claims. Your policy becomes invalid, and you have to pay for all the repairs yourself.
6. Forgetting the Claim Process
If you forget to use the correct channels to file a claim, your policy could become invalid, and the claim rejected. Once you receive your vehicle insurance policy, read the documents carefully. Note down the claims process and save the numbers for easy access. Once you’re safe after an accident, call your insurance company and inform them about your claim.
Hardly anybody remembers to check their car insurance validity. If your insurance policy becomes invalid, you risk losing your insurance coverage. Always remember to renew your vehicle insurance policy on time. Make sure you ask for your No Claim Bonus (NCB) to enjoy a discount on your premium. At Edelweiss, we offer car insurance policies that you can customise with add-ons that meet your unique requirements! Browse our plans today and find a policy that fits your needs.