An insurance dealer suggested that I pay my premiums to them instead of the insurance company. They offer attractive premiums. What steps can I take to ensure I don’t get scammed?
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By law, insurance premiums can only be paid to insurance companies. It is illegal for any company other than a licensed insurance company to charge these fees, so you should avoid signing such a contract. No guarantee or undertaking of any kind by the dealer is binding on the insurance company. Ultimately, the insurance company will pay your claim, so you should always have a contract with them. If you do not pay the insurance company, the insurance company will not recognize you as the policyholder. You may also find it difficult to resolve any issues with service or claims.
I recently traded in my old car for a new one. I never made any claims. The used car is currently in the custody of the dealer. Can I get a refund for the remaining policy period? If so, what does the process look like?
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You can get a refund of your premiums for the unexpired period of your policy. If you sell your car to a dealer, they may insist that you continue to pay the third-party premium. This is because third party insurance is compulsory. In this case, you can ask the insurance company to divide the policy into “own losses” and “third-party liability.” OD components can be canceled and you can get a refund for the unused period.
Since you didn’t make any claims, you may be eligible for a hefty “no claims bonus.” You can ask your current insurance company to issue you a no-claims bonus certificate and have the bonus rolled over to your new car insurance premium. This will help you get significant discounts on your new car premiums.
Abhishek Bondia is co-founder and CEO of SecureNow Insurance Brokers.
