Port Motor Insurance Policy: If you have taken motor insurance or car insurance and are not satisfied with the existing company, then you can get it ported to another company. Know what is the process…
Car Insurance Porting Process: Most people are aware that, as per the Motor Vehicles Act 1988, it is necessary to have at least a third party motor insurance policy to drive legally on Indian roads. To buy a right motor insurance policy, it is necessary to have information about the type of policy we need, from where to buy etc. You can get many types of advice from your friends and family regarding this, but along with the opinion of others, it would be good to compare all the options available online yourself and select the right policy according to your needs.
Some customers are not satisfied with their existing insurance company despite getting information about all types of policies and being familiar with the benefits of the policy. If you are also among such motor insurance policyholders, you must know that you can even port your insurance policy to another insurance company during the policy term.
Why opt for portability?
Motor insurance portability comes in handy if the policyholder is not satisfied with the motor insurance policy and its benefits, says Nitin Kumar, Head – Motor Insurance at Policybazaar.com. There could be many reasons such as if the policyholder is getting comprehensive coverage at a cheaper price, or if the insurer or agent has misled you while selling you a motor insurance policy, or the claim settlement process of the current insurer is difficult, or if you The car has started to be used more or less, or if there is no network garage in your policy. Therefore, to choose a better insurance company, the policyholder can opt for portability.
benefits of porting
No Claim Bonus (NCB) remains intact: Kumar says that for every claim free year, the insurance company provides the benefit of No Claim Bonus (NCB). This No Claim Bonus can be up to 50% of the OD premium. People have a general belief that when their existing policy is ported to a new motor insurance policy, they will not get the benefit of NCB. But this is not true as whenever a policyholder ports the motor insurance, it allows him to retain this bonus. If their insurance policy is not renewed on time or if they have made a claim during the policy term, they may lose the NCB.
No need for vehicle inspection: In case of expiry of previous policy or change of ownership of the car, car inspection is necessary to ascertain the condition of the vehicle. But while switching to a new insurance company, vehicle inspection is not mandatory.
When to port your motor insurance policy? Kumar says there is no time restriction on porting your car insurance policy, but it is advisable to switch within 45 days from the date your existing policy expires. By doing this the policyholder will be able to avail benefits like no-claim bonus, no vehicle inspection etc. from the existing policy. After giving complete details of your old insurance policy, the process of portability can be easily completed.
Few things to remember while porting
Check IDV: Kumar points out that before taking a decision to port your policy, you must check the current market value of the car, which is also known as the Insured Declared Value (IDV) of your car. The IDV may change the premium of the current policy, but ensure a suitable IDV to get the correct car value in case of theft or total loss.
Avoid mid-term policy portability: If you wish to change your insurer midway through the policy term, you may lose out on benefits such as no NCB and vehicle inspection, and there are chances that the previous insurer will Don’t give refund. Initiating the portability process 45 days before the expiry of the policy will give more benefits.
Documents required for porting a motor insurance policy: There are certain documents that you must keep handy while porting your policy. Kumar says that the new insurer may require documents like PAN card, Aadhaar card, a copy of the vehicle registration, copy of your previous policy etc. The new insurance company will also ask about your claim history to calculate NCB.
It is not a good idea to settle for a motor insurance policy only on the basis of low premium rates. The decision should be taken after comparing all the options available online, reading the policy details and clauses carefully.
