Knowledge Center

1. My Car insurance policy expired? What should I do now or what can happen if the policy is not renewed on time?

There is a key difference between the two:

Car insurance is mandatory as per the provisions of the Motor Vehicles Act 1988. So if your car insurance policy has expired or if you have forgotten to renew your policy, it implies that you and your vehicle are not covered under insurance and your insurance company is not liable to pay any claims arising out of accident. Moreover, driving an uninsured vehicle in any public space is illegal under the said Act. In addition, your No Claims Bonus (NCB) will also be forfeited, if the policy is not renewed on time.

Usually most insurance companies send a renewal notice well in advance of policy expiry date. With advancement in technology, you can also set your own car insurance renewal reminder through online alerts, mobile alerts etc.

In case your car insurance policy has expired or if you have not renewed your car insurance policy on time, then you can approach your existing insurance company or your dealer / agent to renew your policy. You can also approach another insurance company for your car insurance, however, you need to fill in a fresh proposal form and the new insurer may ask for a physical inspection of your vehicle. Insurance companies may apply additional loading on premium if policy has expired 45 days earlier.

2. What is No Claim Bonus in Car Insurance ? Can I transfer the NCB to my new vehicle ?

If you do not make a claim during the policy period, a No Claim Bonus (NCB) is offered on renewals. Insurers reward policyholders for not making claims by giving them a discount on the Own Damage (OD) premium up to a maximum of 50%. In other words, it's a discount that you would get after a claim-free year, an incentive for driving carefully and avoiding accidents. However, it should be noted that NCB would be allowed provided the policy is renewed within 90 days of the expiry date of the previous policy. Another moot point is that NCB becomes nil in case a claim is made by the policyholder. In cases where existing vehicle is sold and a new vehicle is purchased, NCB can be utilised within a period of 3 years.

Period of insurance % of NCB on OD premium
2nd year 20%
3rd year 25%
4th year 35%
5th year 45%
6th year 50%

Transfer of NCB to new Vehicle: You can transfer full benefits of your No Claim Bonus (NCB) to your new vehicle provided the new vehicle is also of the same class. You can also transfer full benefits of NCB when you shift your motor insurance policy from one company to another.

3. What do I do if the vehicle is stolen and along with vehicle all my car documents & original policy is lost?

If your vehicle is stolen, report the matter immediately to the insurance company through their call centre or toll-free helpline. Also inform police (FIR) and the Road Transportation Office (RTO) where the vehicle is registered and obtain an acknowledgement from the RTO with details of the theft of your vehicle. Post that, submit the following documents to the insurance company at the earliest to expedite your claim process.

  • Claim form duly
  • RC copy of the vehicle with all original keys
  • Driving license copy
  • Original policy copy
  • Original FIR copy
  • RTO transfer papers duly signed along with Form 28, 29, 30 and Form 35 (if hypothecated)
  • Final report – A no trace report from the police saying that the vehicle cannot be located.

You can request for a duplicate copy of the car insurance policy from your insurance company, which is available at a nominal fee.

Please note: Standard policy terms & conditions applied. Please refer to the quote comparison & detailed policy wording.