Motor Insurance Rights Most People Don’t Know About

As per the Motor Vehicles Act of 1988, it is mandatory for every private car or two-wheeler to have a 3rd party liability insurance in India. The rule also applies to commercial vehicles. Apart from 3rd party insurance, owners can also purchase comprehensive coverage for added safety.

While most people only focus on the insurance premium and coverage amount when selecting vehicle insurance, it is also essential to know your rights as a policyholder. Here are a few vehicle insurance rights most people are generally unaware of-

1. Transfer of Insurance

If you are planning to sell your car or two-wheeler, apart from transferring the ownership to the new owner you can also transfer the vehicle insurance to the new owner’s name.

Once the vehicle ownership is transferred, the existing owner can submit original RC with the name of the new owner, insurance certificate, transfer fee, and transfer application for transferring the insurance.

2. No Claim Bonus

Even if you want to purchase a new car and new insurance for the same, you can still claim the NCB (No Claim Bonus) of your previous insurance if you haven’t filed any claims during the policy duration.

Depending on the number of years for which you have not filed a claim, you can get a discount on the premium of your new insurance. You can get an NCB certificate from your existing insurance provider for the same.

3. Cancelling a Vehicle Insurance

You can also cancel vehicle insurance during the policy duration. If at all you are not satisfied with the services of your current insurance provider or want to switch to insurance with better features, the existing policy can be cancelled.

However, as insurance is mandatory in India, you will be required to submit the copy of new insurance to cancel your existing coverage. In most cases, you will also receive a refund of the insurance premium. However, no refunds are given if your policy is already eight months old.

4. Filing a Case Against Insurance Provider

If at all an insurance provider has rejected your claim without any genuine reasons or if you are not satisfied with their services, you can file a complaint first with the insurance provider. It is necessary for the insurance provider to revert back to your complaint within 15 days.

If you are still not satisfied, you can also go ahead and file a complaint with the IRDAI. The insurance authority has a grievance redressal cell for such complaints.

5. Getting a Duplicate Insurance Document

If at all you lose your motor insurance papers, you can receive a duplicate copy of the same from your insurance provider. However, you should inform the insurance provider about the same as quickly as possible.

You might also be required to file a police complaint about the same. Avoid driving if you have lost the insurance documents as driving without valid insurance is a punishable offence.

Knowing Your Consumer Rights

Thanks to the IRDAI, the vehicle insurance industry is now more transparent than ever. As a policyholder, you are entitled to many consumer rights that you should know about to make the best use of the insurance policy.

Keep the points mentioned above in mind when dealing with vehicle insurance and exercise your rights as and when needed.