Benefits of Renewal of Insurance Policy Before it Lapses!

Smartchoice Editorial
August 23, 2020

SUMMARY

The article is all about understanding that insurance protection does not only brings you mental peace and tranquillity, It also transfers risk to the insurance provider.

The main idea that you come across how constantly and timely renewal has its benefits and how it cuts-down the stress and worries, in case of any unforeseen situation that you may face where your car and health are concerned.

The article also encompasses the fact that buying insurance online is simple and hassle-free and Smartchoice.pk offers all the providers at one place.  be it health or car insurance they all are available with various coverage plans along with the facility of a free consultation with and car and health expert is an added bonus.

Maintaining an insurance policy….

It is very important to remember…that what is important in life and keeping it with you would bring you peace and financial security.

Sometimes understanding the importance of certain thing at that time is not possible but you need to be foresighted to save the money that you may have to spend due to unforeseen events and incidents, insurance helps you overcome all such expenses.

Owning a car is a capability in itself as it checks off the necessities of the family and lets you travel whenever you desire to and where ever you want to go.
It doesn’t matter how good a driver you are, you aren’t the only one who is driving on the roads. And one thing that needs to be kept in mind is that the mistakes of others can also entrap you into an accident. These accidents can have some undesirable outcomes.

With the update in the law and order situation, it has become even more essential to know about the numerous aspects that affect you as an owner of a vehicle. Car insurance is a major aspect that you need to know about.

The instant loan providers (banks) have made it easy for a person to buy a car. However, the difficult part is to maintain the car. Besides sending your car to a service centre periodically, there is one more thing you need to do to safeguard your car and that is to buy car insurance online. Car insurance is the real reason why your cars run on the roads hassle-free. Life is tranquil and stress-free when you have car insurance with you.

In Pakistan, it is mandatory to have at least third party car insurance policy. However, buying a car insurance policy is not all. You need to take good care of your car. Also, you must renew your car insurance policy on time. The one who fails to renew the car insurance policy on time has to go through a lengthy procedure for making it active by paying a penalty by buying a new policy on new and revised rates.

Renewing the car insurance policy on time is as important as buying a new policy. If your car insurance policy is nearing renewal, here are a few vital tips to keep in mind.

In Pakistan, the car insurance policies are renewed once a year. It is a must to renew your car policy within one year after buying it. Smartchoice.pk ensures that you are notified you about the vehicle insurance renewal via telephone call or an email well in advance before the policy expires.

You must know and keep the record of the basic details of your car insurance policy such as the offerings and the expiration period. You must be prepared to renew the policy before its expiry. There is no grace (extended) period in case of a car insurance policy. You must pay it straight away to avoid the cancellation or expiry of your car policy.

If you fail to make the payment on time, your policy will be declared/considered inactive and from that moment onwards, your car will not be covered under any policy. It means that you shall not be protected in the face of any calamity or disaster.

If you are renewing the policy on time, it means that you wish to continue with the current insurance company and the current insurance policy. Even if you plan to switch your car insurance, you must buy a new policy before your existing policy expires to avoid any risks. Buying the other policy before the existing one expires would ascertain that you are not left uncovered for any period.

Sometime during car insurance renewal, your car insurance company may charge you the new insurance rates. The reason behind this rise could be more number of claims made to the company in the previous year. Even if you met with an accident (with your fault) or you violated traffic rule/s, your premium will be increased by the provider.

How can you pay less, well an important question that many of us are looking answers for is by getting the type of coverage you understand that you need. For example, do you need 3T or comprehensive coverage?

You must take a closer look at your insurance to relegate your policy if you do not need a particular offering, for example, convert your plan from all encompassed comprehensive coverage to theft, threat and total loss policy.

You can get in touch with a car expert adviser at Smartchoice.pk and discuss it. However, do not let go off an important offering simply because you want to save some money on the premium. When you do that without doing the cost-benefit analysis on your car insurance, it may cost you a lot in terms of causing a bigger dent your pockets.

For example, we shall suggest that with a comprehensive car insurance policy, you can drive safely and not worry about the potential financial losses that you might have to incur due to unfortunate events involving your car. Since car insurance policies are valid for only a year, they need to be renewed before their date of expiry. Thus, we recommend that car insurance renewal is something that one must not skip/forget at any cost. Here are some of the major benefits associated with a car insurance renewal.

Third-Party Coverage

In the event of a mishap that involves other people or possessions, your insurance renewal will save the day for you. It will take care of any expenditures arising out of the calamity and handle the legal facets as well of the given situation. The coverage includes compensations to properties or structures and injuries/wounds leading to disability or the death of an individual (third-party).

Comprehensive Coverage

With online car insurance renewal of your comprehensive car coverage, you can continue with your car’s coverage against natural catastrophes such as landslide, earthquake, flood, cyclone etc. On the other hand, man-made disasters and tragedies like theft, destruction, burglary, riots etc. will also be covered.

Switch Insurer and Coverage

During your online car insurance renewal, you can opt for a different insurer as well. It is seen more than often that first-time car insurance policy is purchased from the car dealer itself from where the car is purchased. That time, you might have not given much to the insurer or the coverage you want to opt for. However, you are presented with that option and chance at the time of renewal.

Add-Ons in your car insurance policy

There is a possibility that you aren’t too happy with your policy coverage and need something more. Like the 3T and Comprehensive coverage. So during your policy renewal, you can opt for 5T coverage or something to enhance your policy coverage and protection. Depending on the insurer that you choose, you get access to add-ons such as zero depreciation cover, engine cover; call another car and so on.

Car Insurance Online

While pursuing renewal, you can decide on for car insurance online (buying online) which a much quicker and affordable option is. You can simply visit the website of a digital insurer, for instance, www.smartchoice.pk and get a quote by entering some essential details. Once you are happy with the selected policy and its features, you can apply for the policy within minutes.

Security

Most importantly, when you renew your policy, you get a sense of confidence. This allows you to drive your car around with assurance and not be constantly bogged down by the contemplations of the financial implications of an accident.

You wouldn’t want to miss out on the above benefits while renewing your policy. However, if you do not renew it at the right time, there are a few consequences that you might be facing. If you do not renew your policy, you are wide open to all financial expenses that might arise from an accident.

News Rates on New Policy

If your policy expires, without you getting the renewal, you must buy a new policy which can be a bit more expensive and time-consuming. To avoid all the above mentioned all the hassle, you can simply get the renewal of your car insurance done online before its expiry and keep your vehicle insured.

Is your car insurance about to expire? You can either continue with your current insurance company or make a switch to a new insurer which may provide more benefits.
If you are wondering where to start from, here’s a list of the things you need to take care of before renewing your car insurance.

Compare policies online

Gone are days when you needed to visit the dealerships from where you have got your car and your first policy. Physically visiting the insurer offices to get your policy renewed. Now the process has become fairly simple thanks to the power of the internet and facilitating platforms like Smartchoice. You cannot just access policies online but also compare the insurer’s side-by-side to see which one is providing all-out benefits and coverage’s as per your needs.

It will be advantageous and positive for you if you compare your car insurance policies with different car insurance companies while renewing your car insurance policy. It often happens and has been observed that you can acquire a policy offering a similar number of benefits from another car insurance provider at a lower price if compared.

Choose from the companies who have better compensation and claim settlement records and can make requisite transactions. But, remember, always verify the car insurance companies choose the ones which have AA, AA- and an AA+ rating that shows the financial strength of the company and their capacity of reimbursements and then make a deal.

Select the right plan

There are several car insurance plans present in the market today with varying coverage’s. While the third-party liability car insurance is compulsory in Pakistan, you have the liberty to select the plan. One of the main parameters to choose the plan you want is to choose the one that suits and fits the budget.

Check if the insurer provides cashless support

Another key feature which you shouldn’t miss is the cashless support, for example, you visit the selected mechanics where when done the repairing would be done without paying anything upfront and reimbursement laters, especially when it comes to expensive vehicles. Reach out to the service provider to find out if it has your favourite garage on the panel and you can avail cashless benefits when needed.

Right IDV (Insurance Declared Value) is the key

Declaring the right Insured Declared Value or IDV has a direct impact on your insurance premium. It is the figure that’s given to the insurance company in case of a total loss of the vehicle insured, i.e. irreversible damage or car theft. Picking a stable and balanced IDV amount is crucial. Since greater IDV means you will also have to pay an increased premium, while lower IDV leaves you underinsured in the event of theft or total loss.

Know about IDV

The Insured Declared Value (IDV) describes the current market value of your car’s price and calculated after deducting the depreciation amount of the car based on the model and year of the car. The IDV also indicated the maximum amount you will get in case of your car theft or irreparable destruction caused to the vehicle. So, please ensure to put up the appropriate IDV because a higher IDV amount will just increase your premium. If you are unsure about your premium amount, do check it with your insurance provider and you can also check it at smartchoice.pk by putting in just a few of the details.

What you should know while renewing your car policy

Know about how to renew car policy or steps to renew car policy. Here is all that you need to know before renewing your car insurance policy.

The simplified premium payment process

You just have to follow a simple process to pay your premium as well as renew your policy without depending on any agent or mediator. Smartchoice.pk has made this process simpler for you. Like, we even want to educate and inform you that if you’re purchasing car insurance for the first time while purchasing your car, you don’t have to mandatorily opt for the offer made by your dealership.

You can simply visit smartchoice website and select the policy and provider of your choice, choose the policy you want, make a purchase and renew it. The benefit you will get in this process is you will be able to decide what add-on(s) you want or not, instead you pay for a Car Policy Renewal enforced by policy go-betweens.

Can choose different car insurance policy/provider

While renewing your car insurance, it is not necessary to stick with the same insurance policy or policy provider. You are free to choose a different insurance provider or company which meets your requirements when your existing insurance policy expires. Plus, if you missed adding a particular add-on or rider, for example, zero depreciation, you can surely choose it while renewing your car insurance policy.

Install anti-theft device (Tracker)

You should know, if you have a tracker installed in your car, you can double ensure that you don’t face any loss since the tracker would protect your car against theft.

Grace period

Usually, most of the car insurance providers offer a grace period of anywhere between 3 to 30 days to renew car insurance policy comfortably. Though, it is strongly advised to not to depend on the grace period every year.
It is better to use the grace period only when it becomes necessary. Your car insurance policy will expire on the due date when your insurance provider will not offer you a grace period.

Health policy renewal before its lapse!

Health plans are typically offered as one-year agreements and require a renewal every year. Some insurers like smartchoice.pk may send a renewal notice informing you about the expiry of the policy. However, it is the responsibility of the insured (individual) to renew the policy.

This is to make certain you don’t lose the added benefits that usually come from policy continuation waiting period for coverage of preexisting disease, amongst others. The policy will lapse if not renewed in time.

One of the common questions you might have is If my health insurance policy is not renewed before the expiry date, will I be denied renewal?

An insured should renew their health insurance policy in time i.e. on or before the due date. It is important to keep an eye on the renewal date of a health insurance policy. If you miss out the renewal date, then the grace period is a saviour.

If the provider doesn’t provide the extended period option than you might have to buy a new policy which would be like again starting from the beginning and would further do-away with your pre-existing coverage period.

Insurers provide an extended time frame for policy renewal if you miss out the due date to renew the policy, such extended duration for renewal period for the health insurance policy is called the grace period.

Insurers provide a grace period of 7 to 15 days depending upon the terms of the policy, provided that the premium payment will be made within the stipulated time. The policyholder will not get insurance protection during the grace period. The coverage will start, once the payment is been made. After the tenure of grace-period, if no payment is made, the policy ends After that no policy benefits such as coverage of the waiting period for pre-existing diseases, the no-claim bonus will be provided to the insured.

Why a timely renewal of health insurance policy important?

Coverage of Waiting period

If the health insurance policy is lapsed due to non-payment, you have to buy a fresh health insurance policy by following the whole process again which leads to nullify the continuation benefit. All waiting period will be applicable afresh and you have to wait again for the coverage of pre-existing disease or other specific diseases.

Policy transferability

Since policy portability is not possible after the due date of renewal so it is important to keep yourself aware about the renewal date of health insurance to seek the benefits which can be availed by switching the insurer.

Always keep a reminder of the due date of policy renewal so that you do not regret the loss of continuation benefits.

Case Study

Ali has purchased a health insurance plan in 2015. The health insurance plan has a waiting period of 60 days and for coverage of pre-existing disease and 5 years waiting period with continued renewal is required. The policy offers pre and post hospitalization, cashless claim and other benefits.
Ali renewed the policy on time for two years but failed to renew the policy in the third year. He did not even make the payment within the grace period of 15 days provided by the insurer. He missed out the renewal date and even then insisted on time of grace period.
Due to which, unfortunately, his health insurance plan lapsed and all the policy continuation benefits ended. All the benefits which he has earned by staying and renewing the insurance policy for the tenure of two years are forgone. In such a case, Ali purchased a fresh health insurance plan. Again he has to wait for 5 years to get the coverage of pre-existing disease.
If Ali would have renewed the policy on time, all the continuation benefit would have been provided to him.
Hence, it is good to renew a health insurance plan each year than purchasing new health plan every year. Timely renewal of health insurance plan is a must. Because insurer always appreciates timely renewal of policy in terms of value-added benefits such as free pre-and-post hospitalization, cashless claim and various other discounts.
Things to Remember while renewing health insurance

Your health insurance policy is usually valid for one year from the date of purchase of the policy. Before or as soon as this period is over, you need to renew your policy to keep enjoying the benefit of continued coverage.

Never procrastinate when it comes to policy renewal. If you forget to renew it by the last date of your policy, remember to at least finish the renewal before the policy expires. Keep note that the “grace period” is only for renewals, and you are not covered on these days. A medical emergency during this period can be devastating.

Whether or not you have made any claims in the last year, you have invested in the policy, month after month. If you decide not to renew it, you lose out on benefits. Some insurance companies may even provide you with a discount on renewal if that has been going during any campaign.

Waiting period

Almost every policy has an initial waiting period of 30 days from the date of purchase before it begins to cover your medical expenses. If you forget to renew your policy, you will be forced to purchase a new policy and will need to wait another 30 days before the coverage kicks in.

For the treatment of pre-existing diseases and (in special cases) maternity, there is usually a waiting period of a few years. If you miss out on renewing your policy on time, you also lose the one year or required years you have already waited and will need to begin your waiting period from Day 1 once again.

Before the validity of your policy expires, consider other policies that may be available with the same insurance company or a different one.

Understanding the Change

The policy you opted for one year ago may seem obsolete now as your family may have changed (if there has been a birth or death), or if you feel that your medical needs are now different. This may leave you with a tendency to allow the policy to expire. Instead, we suggest that you use the last month of your policy period as an opportunity to revise your coverage, increase your sum insured or make any other changes you may need in terms of the policy promptly without losing out on continued coverage.

Every family wants to find ways to save money despite the range of expenses it has to meet every month. Unexpected medical expenses, especially during emergency hospitalization, can severely impact a family’s savings. A health insurance policy works as a protective cover against such expenses. By paying a regular premium to the insurer, policyholders are eligible to get coverage for a specified policy term.
They also have the option to go for health insurance renewal so that the benefits become available without interruption. The option to renew health insurance online is highly beneficial for policyholders.

Online Process to Renew Health Insurance from Smartchoice.pk

The online procedure for renewing a health policy is completely hassle-free. In just a few clicks, as you can get the policy renewed and continue to avail the benefit that includes cashless hospitalization, pre and post hospitalization medical cost coverage, free second opinion services etc.

The basic procedures involve

Contacting Smartchoice.pk: You must contact Smartchoice.pk (usually Smartchoice contacts its customer when the renewal is due, but if due to some reasons you miss that) and raise a request for health insurance policy renewal. The request must be raised with the specified period before the policy expires.

Provide the relevant and required details: Complete details including the policy number must be provided to a health adviser at Smartchoice. You should also be updated about any information regarding the change in the medical condition that has occurred.
Making payment: The payment for the policy renewal can be done through any digital mode such as credit card, debit card or net banking and even the cash on delivery option is available.

Continuing protection?

The best health insurance plan is of little use if it is allowed to lapse. Renew your policy on time to continue to enjoy the protection of health policy and to ensure that you have the peace of mind of knowing that you and your family is protected.
Accrued benefit – Renewing health insurance on time has a benefit beyond the obvious one of uninterrupted coverage. You can also take advantage of any special discounts or incentives that your insurance provider is offering you for renewing on time. At the same time, you also inch forward towards coverage of your pre-existing as well.

Renewing Health Insurance provides you with the Tax Benefit

Buying a health insurance policy, the policyholder becomes entitled to significant tax benefits or income tax rebates. To continue to enjoy the tax benefits you should ensure renewing health insurance on time.

A lapsed plan will cost you

You have chosen the best health insurance plan for your needs and have made a careful choice based on your requirements and lifestyle. By not renewing health insurance on the time you are relinquishing the many benefits that have accrued on your policy.

Generally, there is a waiting period of 30 days after the issuance of a policy to you before you can claim on the policy. Not renewing it on time you will again have to spend that time for 30 days again, during which you shall not be covered for anything.

This waiting period will start ticking from the beginning yet again when allowing your existing policy to lapse and delay renewal.

You may not be able to buy the same previously bought policy after a certain age
If you purchase a health policy at an appropriate age; for instance when you are in your forties or even earlier and then continue to renew it on time for the next few years, you will be protected by the policy continuously according to the terms and conditions therein.

However, if you decide to let policy gap for any reason (you may mistakenly think that it is unnecessary if you had no cause to claim that duration) you and your family remain unprotected for that duration. Furthermore, you may not be able to buy the same insurance policy as easily later in life.

Insurance companies are reluctant to issue policies to people who cross a certain age the same plan. and after that, you might fall into a policy bracket that is different from your last one and more expensive than the previous one as well. The older you grow you usually have some pre-existing diseases and have a higher likelihood of developing diseases or chronic conditions. So change in category will affect your premium as well.

Health Insurance plans become more expensive with age

The early in your life you buy health insurance, the lower is your premiums. Hence, if you buy a health policy when you are young and then allow it to lapse, you will find that a health policy when acquired again becomes quite an expensive proposition to be undertaken. Smartchoice has multiple plans that are suitable for your changing needs, for example, whether you are looking for individual insurance, family or parents plan for your later age, all plans are available from multiple companies. Which can be compared and even some of the plans can be bought online upon providing the details and credentials.

There are many reasons for getting your car insurance renewed at the right time, it will not only save money and cut cost in your monthly budget. But it will also help you to be continuously protected without being directly exposed to any financial loss. At the same time, it brings you mental peace and serenity that no amount can compensate.
There are several excellent reasons for renewing Health Insurance on time.

Continued coverage of your family’s health and comfort, as well as peace of mind, is just one of them. From the above mentioned it is obvious that there are financial and real-world reasons why you should renew your health insurance. This further consolidates why you should renew the insurance before the date of expiry or within the allotted grace period after the end of the procured policy.

We buy health insurance as we can transfer the risk and cut on the hassle us, as well as for the convenience of being able to seek cashless services from a wide network of hospitals at the time of an emergency. This is a stressful time when the last thing one wants to do is run around trying to raise cash. Renewing health insurance on time not only gives you uninterrupted peace of mind, but there are also other benefits of this as well. We look at the benefits of renewing health insurance plans on time.

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