What You Should Know About Car Insurance Policy Cancellation
It is mandatory for every car owner to have a car insurance for the car that they own in Singapore. This is not just helpful to cover the costs in case of an accident but also to protect the people who use the road. There are many insurance companies in Singapore that you can use.
Each of the insurance service providers have their own terms and conditions which may differ from one to another. However, it is important for you as a car owner to be aware of the nuances involved in signing an insurance with a specific insurance provider.
There are certain circumstances under which a car insurance can be cancelled. While there are instances when the provider cancels the insurance there are also ways for the car owner to cancel the same. We look at a few things you ought to know about cancellation.
Cancellation by Car Owner
A car owner can choose to cancel the insurance for their car at any given point they choose to. The reasons can differ and is not mandatory for them to stick to an insurance service provider even if they have paid the premium in full for a year.
Usually, you can obtain a cancellation refund partially if you apply to cancel within a certain period.
The insurance service provider would deduct the amount for the days or months that their insurance was in effect for your car. So, in accordance to the regulations you can still get a refund for your car insurance from them.
Cancellation by Insurance Provider
In most cases you would not get a cancellation refund if the insurance policy is cancelled by the insurance service provider. There are a variety of reasons for which your policy can be cancelled and you would be served a 30-day notice period before it comes into effect.
Some of the common reasons for insurance cancellation by the service provider are as follows:
- Failure to adhere to the terms of the policy
- Failure to make regular payments
- Filing a fraudulent claim
- Safety of the car is in question
- Using a car for business purposes
Irrelevant of the circumstances that led to the cancellation it is important that you do not drive without a car insurance policy. It would not just attract you a fine but can also lead to the car being impounded and you having to serve a jail term.