By Nitin Kumar

While motor insurance is a legal mandate, it doesn’t have to follow the one-size-fits-all rule. Policyholders are on the lookout for added benefits, new features or more affordable pricing. At the time of policy renewal, find out if it can be renewed as-it-is or if it requires modifications. Here’s a quick checklist that will help you evaluate the same:

Update details

Ensure that all the information on your insurance policy is accurate and up to date. Any change in details should be duly informed to the insurer at the time of renewal. It could be change in address/contact details, bi-fuel kit (like CNG) addition, change in hypothecation status, or addition of electrical/non-electrical accessories. Once information is updated, review the details and renewal premium amount before paying.

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Pay as you drive (PAYD)

PAYD is a new-age insurance product that lets policyholders customise the policy as per usage (the premium gets reduced if you don’t drive regularly). If you have limited vehicle usage or are an occasional driver but are paying full premium regardless of the km driven, you should consider this at the time of renewal. The premium is calculated based on multiple mileage slabs options such as 2,500 km, 5,000 km, 7,500 km, etc. Some insurance companies allow you to switch off your policy for the days when you don’t drive, and for the number of switch-off days, policyholders can earn additional discount on subsequent renewals. You can consider shifting to PAYD if you want to save on premium.

Online versus offline

It’s worth considering the online mode. You can compare features and pricing anywhere, anytime, and online also offers better value for money as it is transparent, quick and eliminates potential influence on your decision. It is time-efficient and there are offers and discounts.

No claim bonus (NCB)

Policyholders can obtain NCB discounts at the time of renewal for not having made any claims for successive years (up to a maximum of five years). The discount percentage starts at around 20% in the first year and up to 50% in the fifth year. But even a single claim made within a year can nullify the accumulated NCB benefit. Further, the policyholder can transfer the NCB to another/new car.

Porting

Though mid-term porting is not permitted, you can port at the time of renewal with NCB and all other benefits intact and transferrable.

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Add-ons

When renewing a comprehensive car insurance policy, carefully consider the available add-ons. These provide customised and enhanced protection against potential expenses. Some vital add-ons to consider are zero-depreciation cover, engine protection cover, roadside assistance cover, and lock and key cover.

To ensure comprehensive protection, renew your car insurance policy 15-30 days before its expiry date. This way you can maintain uninterrupted coverage and ensure full protection. In case you have missed to renew your policy before expiry, your policy will lapse, and no claims will be accepted after expiry. You can still renew your policy after expiry, but you may be required to go for inspection of your car at the time of renewal. If the policy is renewed within 90 days of expiry, the policyholder can avail the benefit of NCB, but failure to renew within 90 days can lead to NCB termination, and you will not get the benefit of NCB.

The author is head, Motor Insurance, Policybazaar.com