Under the Conditions for the Renewal of Contract, it is mentioned whether the Motor Insurance policy will be renewed or not and if yes, what is renewal procedure. Generally, Motor Insurance policies are issued for one-year duration, though we do have policies for 3 years. In either case the policy renewal conditions will apply.
What is renewal? It means at the end of the policy period of Motor Insurance i.e., if your Motor Insurance is valid for one year then you have to pay the premium again at the end of one year to keep the policy in force. You have to keep the policy in force because it is mandated by law. You cannot let the policy lapse or expire or die. Otherwise it will be illegal, violation of law and according to Motor Vehicles Act, 1989 be punished either with jail or fine or both. Therefore, every insured wants to renew the policy. Nobody want to end up in jail.
I am looking at various companies Motor Insurance policy wordings – M/s Reliance General Insurance Company, ICICI Lombard General Insurance Company, Liberty General Insurance Company and Tata AIG General Insurance Company. I wish to examine all insurance companies Motor Insurance policy wording but it is not possible to examine. This is a sample…tip of the iceberg.
M/s Tata AIG Insurance policy conditions for renewal of contract reads as follows: “The policy may be renewed with our consent. The benefits under the policy or / and the terms and conditions of the policy including premium rate may be subjected to change. We, however are not bound to give notice that it is due for renewal. Unless, renewed as herein provided this policy shall terminate at the expiration of the period for which the premium has been paid received. No renewal receipt shall be valid unless it is on the printed form of the company and signed by an authorized official of the company”.
Please observe the contradiction. The M. V. Act mandates all vehicle owners to have a Motor Insurance policy. Hence, you cannot let your policy lapse, expire or die. It is the insured’s duty to keep the Motor policy in force. The insurance company says the policy may be renewed with our consent. It means, for example, if the insurer does not give his consent, then the policy cannot be renewed. The law says to all concerned to keep the policy in force. Insurer says the policy may be renewed with our consent. Now, who is the boss? The Law or the Insurance company? You decide.
M/s Reliance General Insurance Company, ICICI Lombard General Insurance Company, Liberty General Insurance Company do no talk about conditions of the contract for the renewal at all; whereas M/s Tata AIG General Insurance Company talks of the conditions for renewal of contract…of course, they may say policy may be renewed with our consent. In the other 3 companies, referred above, are not talking of Moot Policy renewal at all! They are not at all insisting about renewal. They are silent about it. The moot questions, therefore, for the insured is: Can the policy be renewed? Can the renewal premium be paid? Can the insured follow the law in its letter as well as in spirit? These 3 companies do not care either for renewal or for conditions of renewal of contract in the policy or for the law. Go to hell, they silently say.
We, the insureds, are paying billions of rupees towards premium every year. Either the Insurance Companies or the Regulator whose salaries are paid by the insureds do not care a shit both to the policy wordings and the customer / the insured. Under these circumstances do you, my dear customer, expect that your claim will be paid in full should there be an accident? I leave it to you sirs.
About the Author
Dr. K. Raja Gopal Reddy is a seasoned internationally qualified Insurance professional.
What you are reading here, may not answer all the questions we have, but has the absolute power of asking unsettling questions which increase the interest in the strange world, and show the contradictory wonders lying just below the surface of the commonest things of life. Look at this disturbing but beautiful thought of Friedrich Nietzsche “God is dead. God remains dead. And we have killed him”.
Dr. Reddy can be reached at: raja66gopal@gmail.com
