Difference between car insurance non-renewal and cancellation in India.

Difference between car insurance non-renewal and cancellation in India.

(ThyBlackMan.com) Third-party liability car insurance is a mandatory requirement for all vehicle owners in India under the Motor Vehicles Act, 1988. However, there may be situations where you need to cancel or non-renew your car insurance policy. While both non-renewal and cancellation may seem similar, they have distinct differences. In this article, let’s explore and understand the difference between car insurance non-renewal and cancellation in India and what you need to know.

What is car insurance non-renewal in India?

Car insurance non-renewal in India refers to the decision of the insurer not to renew your car insurance policy at the end of the policy term. This can happen for various reasons, such as:

1. Non-payment of premium: If you fail to pay your premium on time, your insurer may decide not to renew your policy.
2. Non-compliance with policy terms and conditions: If you fail to comply with the terms and conditions of your policy, your insurer may decide not to renew your policy.
3. High-risk driving habits: If you have a history of high-risk driving habits, such as reckless driving or multiple accidents, your insurer may decide not to renew your policy.

What is car insurance cancellation in India?

Car insurance cancellation in India refers to the termination of your car insurance policy before the end of the policy term. This can happen for various reasons, such as:

1. Request from the policyholder: You can request your insurer to cancel your policy if you no longer need it or if you’ve sold your car.
2. Fraudulent activities: If you’re found to have engaged in fraudulent activities, such as providing false information or making false claims, your insurer may cancel your policy.

Key differences between car insurance non-renewal and cancellation in India

Here are the key differences between car insurance non-renewal and cancellation in India:

What to do if your car insurance policy is non-renewed or cancelled in India?

If your car insurance policy is non-renewed or cancelled in India, here are some steps you can take:

1. Review the reasons: Understand the reasons for non-renewal or cancellation and take corrective action to prevent similar situations in the future.
2. Shop for new insurance: If your policy is non-renewed or cancelled, you’ll need to shop for new insurance to ensure your insurance coverage.

To wrap up

Car insurance non-renewal and cancellation are two distinct concepts that have different implications for policyholders in India. Understanding the differences between non-renewal and cancellation can help you take the right decision and ensure insurance coverage for your car.

Staff Writer; Jerry Poole