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It is important to always renew car insurance on time.

Expired insurance will attract penalty
Do you know what happens if the traffic police catches you driving a car without insurance? The same penalty has been levied under the Motor Vehicles Act 2019 on both cars and two wheelers.  If caught for the first time, the fine can range from 2000 rupees to three months jail, or both. If caught for the second time, the fine can be double ie 4000 rupees and three months in jail or both.

Disadvantages of a lapsed policy
In case of a lapsed policy, the owner of the vehicle has to indemnify the third party damages in addition to the damage caused to his own car. Third party ie TP insurance has become mandatory from September 2018. Apart from the driver and the insurance company, the vehicle of the other person involved in the accident is known as third party. So, the damages caused to someone else’s vehicle is covered under the third party insurance policy. A cover of  7.5 lakh rupees for third party vehicle or injury  caused to him is paid under third party cover. If the policy has lapsed, then expenses will not be covered. Also, it will be punishable. In addition to fines, there may also be a jail term. Damage to the vehicle due to natural calamities like hurricane or earthquake will also not be covered. Even if the car is stolen, you will not be able to take advantage of the insurance. After the loan payback of the car or two wheeler is completed, it has to be registered in the name of the owner. But, if the policy has lapsed, then, the vehicle will not be registered.

Insurer Will Apply Brakes On The Cover
If the policy is not renewed in time, then it is considered as a break in policy. Insurance companies usually give a grace period of 15 to 30 days from the due date. But if there is a delay of more than 90 days, then, you will be not lbe eft with any option other than to take a new insurance policy. Buying a new policy means that the vehicle will be re-inspected. Also, you will not get the no claim bonus discount.

How can you Prevent Policy from Getting Lapsed?
There are a few simple steps that can be taken to avoid the  policy from getting lapsed. To avoid lapse of the own damage policy, set the expiry date reminder on your phone. As far as third party insurance is concerned, it has become mandatory for new vehicle buyers from 2018. Long term third party cover is available with every new vehicle. Three years third party cover has to be taken for the car and five years third party insurance is mandatory for the two-wheelers. If you have bought a car before 2018 then you will have to take third party insurance separately. Own damage insurance is not mandatory but you should have it so that it can protect you from financial loss due to the accident.