Your car insurance is a crucial document and should be with you every time you are in the car. You need to follow several rules and regulations concerning how you buy car insurance and maintain it. There may be many factors that may force an insurance company to invalidate your car insurance policy. Here are some of the most common ones:
- You did not renew your insurance policy on time.
When you buy car insurance, its validity is anywhere between 1 to 3 years, depending on the policy type. Once that time has passed, you have to get it renewed, or the policy becomes invalid, and you cannot make any claims against it.
- You did not provide correct information at the time of purchase of the policy.
If the insurance company finds any discrepancy between the material information you provide when buying the policy and while making a claim, they will reject your claim and invalidate your policy. This is a fraud prevention measure.
- You did not declare modifications made to your car while buying the policy or changing.
The most common case here is the retrofitting of a CNG kit in a petrol car. When you get a CNG kit installed in your car, you are required to inform the RTO and your insurance company, as well as get a new PUC certificate.
If you do not inform the insurance company about the changes and get them endorsed in your car insurance policy, it becomes invalid.
- You used a personal vehicle for a commercial purposes.
When you buy a car with a white number plate, you are registering it for personal usage, and the resulting car insurance also caters to such a purpose. If you ever drive that vehicle for any commercial purpose, your insurance policy becomes invalid.
Commercial vehicles have to follow much stricter norms and rules in many aspects. Their insurance policies are also priced differently, so a private vehicle policy is not meant for commercial usage — it only voids car insurance.
- You made a false claim under your insurance policy.
When you buy car insurance, you seek a way to cover any kind of unexpected risk. Yet false claims often make their way to car insurance companies because of a variety of reasons. The firms try to ensure that everyone remains safe, but anyone who makes a false claim hurts this collective effort and, as a result, is not eligible for the protection it offers.
- Your car inspection did not go as planned.
If you get a car insurance policy renewed after its expiry, you are required to get your car inspected by an authorised surveyor from the insurance company. If they find any problem with the car or if it does not meet any set parameters in the inspection, your policy may become invalid.
- You failed to follow the claims process laid down by your insurance company.
Apart from the procedure, they also inform you about the documents required for making a claim when you buy a car insurance policy or renew it. You must follow their methods in both letter and spirit, otherwise, your car policy can become invalid.
- You were fleeing or fled from the accident spot.
In a mishap, you must obey the law and also inform your insurance company as to the exact nature of the events. Sometimes people panic and think they can get away with it. If you abscond, your policy will be invalidated.
- You violated a law.
If you use the vehicle in contravention to any law of the land, your insurance company has the right, and in many cases, may even be legally required, to make your policy invalid.
Always remember that the insurance policy you buy is a legally binding contract of indemnity between you and the insurance company. As such, it comes with all the clauses and regulations that you need to adhere to for its validity.