Still Driving Your Car with a Lapsed Insurance Policy? Here’s What You Should Know

Still Driving Your Car with a Lapsed Insurance Policy? Here’s What You Should Know

Revealed on March 29, 2021. EST READ TIME: Four minutes

Still Driving Your Car with a Lapsed Insurance Policy Here’s What You Should Know

The Motor Automobiles Act mandates that each automobile proprietor ought to have a third-party automobile insurance coverage coverage to be eligible to drive on Indian roads. So, by default, while you purchase a car, you are taking a plan, be it a third-party automobile insurance coverage coverage or a complete automobile insurance coverage coverage. This coverage might be legitimate for a yr or extra. Irrespective of the coverage timeframe, most insurance coverage suppliers will remind you to resume the coverage earlier than it expires. Some renew it promptly, whereas others could select to disregard the reminders and overlook to resume it altogether. Due to this fact, it’s of no shock when they’re slapped with a heavy challan the second they’re caught driving with a lapsed coverage. However, even when the coverage will get lapsed, one can nonetheless renew it. Here’s a information to observe when caught with a lapsed coverage.

Understanding the idea of a lapsed coverage

The automobile insurance coverage coverage that you simply buy is issued for a specified interval. On the very least, the coverage is issued for one yr. You’re additionally allowed to buy long-term insurance policies like these which might be issued for 2 or three years. As soon as the period of your coverage has handed, your coverage is taken into account lapsed. You aren’t provided any safety underneath a lapsed coverage. Because of this if a automobile meets an accident when the automobile insurance coverage renewal was not performed, you won’t be able to make any claims towards it. Equally, it additionally signifies that your car doesn’t meet the minimal third-party insurance coverage coverage requirement, which is a authorized mandate.

Disadvantages of a lapsed coverage

In case your coverage has expired, you can be required to get your automobile inspected earlier than you possibly can renew your automobile insurance coverage on-line. If 30 days have handed since expiry, you’ll have to pay late charges. Different disadvantages of a lapsed automobile insurance coverage coverage are:

  • You aren’t driving a automobile legally and can get fined: As talked about above, driving a automobile with no legitimate insurance coverage coverage is breaking the legislation. If you’re caught driving a automobile with out legitimate insurance coverage, you can be issued a challan of INR 2,000.

  • You lose the personal harm cowl: In the event you drive a automobile with out legitimate insurance coverage and meet an accident, you should have no safety. All of the payments to restore your automobile will now must be borne out of your pocket. There isn’t a insurance coverage firm to share the burden with you.

  • You lose your no-claim bonus: If in case you have been a cautious driver, you have to have collected a big quantity of No-Declare Bonus. If 90 days have handed since your automobile insurance coverage expiry, you’ll lose that collected NCB and must begin once more.

  • You danger monetary loss: Do you know that third-party insurance coverage is obligatory for everybody as a result of it’s used to cowl the damages induced to different individuals in case your car is concerned in an accident. In case your coverage has expired and the courts order you to pay compensation for somebody harm in an accident involving your car, you’ll have to pay that cash out of your pocket.

Understanding automobile insurance coverage coverage renewal

Automobile insurance coverage renewal should ideally be performed earlier than your present coverage has expired. The very best method is to get your insurance coverage renewed not less than a month earlier than it has expired. Renewal of automobile insurance coverage on-line is sort of simple. Merely go to the insurance coverage supplier’s web site and select the car-renewal tab if opting for a similar coverage. You too can discover different insurance policies by the insurance coverage supplier and examine them along with your present coverage earlier than making a alternative.

What to do in case your coverage has lapsed?

In case your automobile insurance coverage coverage has lapsed, you have to instantly do the next issues.

1. Don’t drive your automobile! As informed earlier, driving a automobile with an expired coverage will land you in deep trouble.

2. Seek for and select a plan for automobile insurance coverage renewal. Go to the insurance coverage firm web site and choose an insurance coverage plan.

3. Schedule a go to for automobile inspection and get it inspected. Maintain your automobile papers prepared when the inspection officer visits you.

4. Upon approval, make the fee promptly and get the coverage issued.


A lapsed automobile insurance coverage coverage means potential for authorized and monetary points. Whereas it’s advisable to resume the coverage earlier than it lapses, in case you fail to take action, merely observe the above-mentioned steps and get it renewed ASAP!

Disclaimer: The above data is for illustrative functions solely. For extra particulars, please seek advice from coverage wordings and prospectus earlier than concluding the gross sales.

This weblog has been written by:

S. Gopala Krishnan | Motor Insurance coverage Knowledgeable | 40+ years of expertise in insurance coverage trade

A veteran in insurance coverage trade. S. Gopala Krishnan is a reputation to reckon with within the subject of reinsurance, he has headed the Reinsurance division and has wealthy expertise in different fields of motor insurance coverage. He likes to share his opinion on newest matters within the insurance coverage trade and the way he may also help individuals in safeguarding their belongings utilizing insurance coverage merchandise.

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