While insuring your four-wheeler is essential, knowing the proper recordkeeping process is equally crucial. This post discusses which insurance record to keep and for how long. Keep reading to know more.
Four-wheeler insurance is an essential part of owning a car. While third-party insurance is a mandatory requirement in India as per the Indian Motor Vehicles Act 1988, comprehensive car insurance can provide extensive insurance coverage to your four-wheeler against both third-party claims and own damages.
Moreover, a comprehensive car insurance policy can offer many valuable add-ons at an extra cost that can improve the scope and coverage of your insurance. However, car owners can often feel overwhelmed about which insurance record they should keep and the period for which they should hold on to these records. So, let’s delve deeper to find out.
Important Car Insurance Records to Keep
Vehicle insurance policy papers have all the details regarding the policy amount, policy tenure, the type and scope of coverage, terms & conditions, etc. Your insurer will ask for these documents in case of a claim and the subsequent settlement process.
Therefore, keep a copy of your current car insurance policy documents in your car as well as at home. For added security, it is recommended to also keep a scanned copy of all the policy papers in your email.
Monthly Billing Statements
Maintain a systematic record of the monthly bills of your car insurance policy for income tax purposes. You may have to produce all these records if you’re audited.
Insurance Claim Documents
The insurance provider can ask for various documents in case of a claim. This may include your first communication to the insurer regarding the reason and nature of the claim, medical records in the case of hospitalization, First Information Report (FIR) in the case of accident or theft, etc.
Communications from Insurer
Your insurer can often send emails regarding insurance renewal, claim settlement status, etc. Keep a record of all these communications in one place.
If a car is stolen, then the owner must file a car theft complaint with the police and inform the Regional Transport Office (RTO) about the same. If the police cannot retrieve the car, then they will provide a Non-Traceable Certificate (NTC) for the stolen vehicle. Moreover, the court will give a final report under Section 173 of CRPC.
You have to submit the court’s final report along with the NTC to claim the car insurance amount. Keep a copy of the NTC until you receive the claim amount.
How Long Should You Keep the Car Insurance Records?
You should always keep the current car insurance records at a location easily accessible to you. In most cases, records of expired insurance policies are not required. However, you must keep a record of an old vehicle insurance policy if you have a pending claim settlement against that particular policy.
Apart from keeping the insurance records, choosing the right insurance provider is also vital. Consider the insurance provider who can provide you with the option of purchasing car insurance online, which is a hassle-free process. Moreover, consider selecting an insurance provider who is reputed and has a pan-India presence.