As per the Indian motor rules, it is mandatory for every car owner to have a valid car insurance policy to drive legally on Indian roads. However, there may be situations when an insurer would want to cancel his/her four-wheeler insurance policy. Here are some most common reasons for car insurance cancellations:
Selling a Car
If you have purchased a long-term car insurance policy and choose to sell your car, then you must consider cancelling your car insurance policy. Even if you have purchased a yearly comprehensive car insurance policy and still have time left for expiry, you must cancel your old policy and transfer your car documents to the purchaser.
Unhappy with Current Insurer
Another reason for car insurance cancellation is if you are not satisfied with your current insurer and decide to go for a better option. In such cases, you need to cancel your car insurance from the previous insurer while changing your insurer.
Cancelling car insurance is a pretty easy process. If due to any of the reasons you are looking to cancel your four-wheeler insurance, follow the ways mentioned below:
As soon as you plan on cancelling your car insurance policy, you must inform the insurer about the cancellation. You can get in touch with your insurance company via email or call and tell them to start the policy cancellation process.
Before cancelling the policy, take the guidance of your insurance company as they will help you with the cancellation process. The insurer may ask you to submit a declaration stating the reason to cancel the plan. You may also need to sign a document for policy cancellation. Usually, this process is different for different companies, so make sure to talk to your insurer.
Once your car policy is cancelled, the insurer will give you a car insurance certificate stating the details of the cancelled policy along with the accumulated NCB till cancellation. Make sure to collect this certificate as it will help you in claiming your accumulated NCB while purchasing a new car insurance policy.
When you cancel a car policy midterm or soon after purchasing it, the insurer may refund you the premium amount based on the policy terms and conditions.
While cancelling your policy, if you state the reason as ‘Switching insurer’, your insurance company may ask for a new car insurance policy. Thus, in any case, do not forget to buy a new car insurance policy from the new insurer. Even if you are selling your old car and purchasing a new one, it is mandatory to at least have a third-party insurance policy.
If you have had an unsatisfactory experience with your previous insurer, make sure to compare third-party and comprehensive car insurance online from Policybazaar.com so that you can the best one this time.
The cancellation of long-term policies that have a 3+1 year tenure will have standard conditions. Such policies shall have a free-look-up period of 30 days from the date of policy inception. If a policyholder has cancelled the policy within this look-up period, he/she will be entitled to a refund on a pro-rata basis.
The long-term own damage policy can be cancelled during its tenure by giving the notice of cancellation. In such scenarios, the premium refunded will be:
Above we have mentioned everything you need to know about cancelling a car insurance policy. However, if you still face any issues, you may connect with your existing insurer. If you have purchased a policy from Policybazaar.com, you can connect with our 24*7 customer support executives.
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