Find out how to Motor Insurance Cancellation and how premium will be reimbursed to Insured as a refund in different conditions which met….
Cancellation of Motor Insurance Policy can be done by either Insurer or Insured. In both cases minimum premium to be retained or some cases no premium refund will be done.
A policy can be cancelled only after ensuring that the vehicle is insured at any other insurance company at least for Liability Only cover and after surrender of the original Certificate of Insurance for cancellation.
Cancellation of Motor Insurance Policy
Cancellation of motor insurance policy can be done either by Insured or Insurer. In each case reimbursement of premium will differ.
Cancellation of Policy by Insurer
- A policy may be cancelled by the insurer by sending to the insured seven days notice of cancellation by recorded delivery to the insured’s last known address.
- Refund of premium will be done on prorate basis if policy cancelled by Insurer.
- Insurer should inform the Regional Transport Authority (RTA) concerned by recorded delivery about such cancellation of insurance.
- In case of Total loss claims policy will be cancelled while settling claims without any refund. In this case no separate cancellation notice will not be sent to customer.
Cancellation of Policy by Insured
- A policy may be cancelled at the option of the insured with seven days notice of cancellation.
- The balance premium, if any, will be refundable to the insured.
- Refund of premium will be subject to there being no claim under the policy.
- If there is no claim and Policy wants to be cancelled by Insured refund of premium will be done on short period basis.
- Insurer should inform the Regional Transport Authority (RTA) concerned by recorded delivery about such cancellation of insurance.