Insurance policies in India are valid for a specified duration; be it health, motor or home insurance cover, the validity is defined at the start. The regulator, Insurance Regulatory and Development Authority of India (IRDAI), has made it mandatory for all vehicles registered in the country to have a motor insurance policy. Motor insurance policies come with different coverages which help customers to either switch or upgrade from time to time in order to meet their changing needs. This article is a comprehensive guide explaining the change of a motor insurance policy.
When can the motor insurance provider be changed?
It is generally recommended to change the insurance provider at the time of renewal of the policy. However, it can be done at other times too. For instance, the insurer can be switched even during an ongoing policy tenure, but one needs to remember to buy a new policy at first and cancel the old one at the same time. Further, when a new vehicle is bought, it is an ideal time to change the insurer if deemed right.
What are the factors to look for before changing the insurance company?
Haste is the most common mistake what buyers commit when switching the insurance company. It is critical to analyse the requirements and then decide whether the insurance provider must be changed or not. The following points can help in considering some factors when changing the insurer –
Premium: If the premium charged at present is higher as compared to the features offered by the policy, it is time to make the switch. Be it a bike or car insurance policy, the premium charged for it must be in line with the features the policy offers.
Quality of service: When it comes to quality of service, it is crucial factor since the poorer the quality of service, higher will be the turnaround. Thus, the overall service offered by the insurer should be considered when taking this step.
Non-availability of add-ons: Add-ons are optional features that significantly enhance the car or bike insurance coverage. Zero depreciation add-on, roadside assistance add-on, consumables add-on are some of the popular riders that increase the pay-out from the insurance company. A good reason switch your insurer can be non-availability of these add-ons to increase the coverage under comprehensive policies.
What are the steps to change the insurance provider?
- The policyholder needs to compare their insurance requirements with existing ones.
- The above step must be followed by thorough research to compare the available policies.
- Look for suitable coverage options.
- Verify the repute of the insurer as well.
- Select the right policy while setting an adequate amount of IDV
- Choose appropriate add-on covers.
- Thoroughly read the terms and conditions of the policy.
- Complete the payment and get the policy delivered to the mailbox.
This is everything you need to know about switching motor insurance policies. Make sure to change the policy when the time comes without hesitation for better coverage offered by competitor insurance providers. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.