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When it comes to renewing car insurance policies, it seems that absentmindedness and sheer forgetfulness are the main culprits for policies getting lapsed.
Survey conducted
This is one of the key findings of a survey by COCO by DHFL General Insurance on customer behaviour when it comes to purchasing motor insurance.
The survey was conducted in Mumbai, Delhi and Bengaluru, among 1,025 respondents. Of these, 75 per cent had an active motor insurance, while the balance 25 per cent had lapsed policies.
Among those with lapsed policies, the survey found that 36 per cent of them blamed their insurance company for not reminding them about the renewal, while 23 per cent blamed insurance agents for not sending a reminder.
“Four in every 10 Mumbaikars claim to blame the insurance company the most, while three in every 10 Bangaloreans claim to blame the insurance company the least,” said the report.
Nearly a fourth, or 26 per cent of those with lapsed policies, said they had simply forgotten to renew their insurance.
The findings are significant given that while third-party motor insurance is mandatory by law, a large number of vehicle owners tend to let the policies lapse after the first year.
“Publicly available data claim that 70 per cent of two-wheelers in India are uninsured and 40 per cent four-wheelers,” said a spokesperson of COCO by DHFL General Insurance.
The survey also found that four out of every 10 people with lapsed insurance were caught by the police, with 43 per cent of the respondents from Delhi reporting such incidents.
However, seven in every 10 of the respondents claim that they did buy an insurance after being caught.
The percentage of respondents is highest in Delhi, where nine in every 10 respondents claim that they bought an insurance after being caught, the survey noted.
Renewal process
The survey also found that the ‘process to renew lapsed insurance is very tedious’, and is the primary reason to not renew the insurance policy in spite of being caught by the police.
On the brighter side, respondents who chose to renew their motor insurance attributed it to legal requirements and concern for their vehicles.
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