Non Life Insurance
What happens if a policy is not renewed in time?
Firstly, if the insured was enjoying a No Claim Bonus in the previous policy and there is no claims made during that period, the bonus eligible on the current policy is forfeited and the policy is treated afresh for the purpose of bonus application, if the policy is not renewed within 90 days of its expiry.
Secondly, if the policy expires and is not renewed in time, before granting the renewal on Comprehensive terms, the insurance company officials have to physically inspect the vehicle, before granting the cover. This may cause a lot of inconvenience. It is, therefore advisable to renew the policies in time so that there is no interruption in the period.