कार इंश्योरेंस

Motor insurance applies to all kinds of motor vehicles, such as cars, jeeps, two-wheelers and commercial vehicles. It is mandatory to insure your vehicle. One of the objectives of motor insurance is that adequate monetary compensation can be provided to the victims in case of an unfortunate event involving the vehicle. There could be, however, situations that require you to cancel the motor insurance. Before we examine those situations in detail, let us understand the types of motor vehicles covered under motor insurance policy.

Two-Wheelers: If you are driving a two-wheeler or bike, it is mandatory to supplement it with a two-wheeler insurance policy. You can go for a comprehensive or a third-party liability policy. The latter is a compulsory requirement.

  • Car:  A third-party car insurance policy is mandated by the government, which protects the third party from possible damages. You can as well go for a comprehensive or own-damage car insurance policy.
  • Commercial Vehicles:  Apart from the above two types of motor vehicles, there exists vehicles which are purely used for commercial purposes such as trucks, buses, multi-utility vehicles etc. It is mandatory to have these vehicles insured as well.

Cancellation of Motor Insurance

In order to understand how to cancel motor insurance policy, it is essential to know the potential reasons for motor insurance cancellation. There could be broadly three situations wherein you may look to cancel your motor insurance policy:

  • Sale of your motor vehicle
  • Dissatisfaction with your existing insurance provider
  • Theft of the insured vehicle and the existing policy not comprehensive enough to provide for losses

Steps to Cancel Motor Insurance Policy

Every motor insurance provider will have their own rules and steps to cancelling their insurance products. It’s therefore important that you apprise yourself of your specific motor insurance company’s regulations. The generic steps to motor insurance policy cancellations, which are found across all motor insurance companies, are illustrated below:

Step 1:  The first step in the cancellation of a motor insurance policy is to let your insurance provider know that you want to put an end to your existing contract. This can be done via e-mail, phone etc. Typically, you would have a representative from your motor insurance company take you through the process of cancellation. You can also direct any questions that you may have regarding the cancellation to this executive.

Step 2:  The reason for cancellation must be provided clearly to the insurance company. For example, if you are selling the insured vehicle, your insurance provider can ask you to submit the sale deed for the same.

Step 3:  You will be asked to submit your existing motor insurance papers to the insurance company, which will be reviewed to finally approve your cancellation request. It is vital that you receive your policy documents with ‘Cancelled’ mentioned on it. The ‘cancelled’ policy documents can be used to buy new policy or to avail of no-claim bonus . Once cancelled, all the contractual obligations from both your and the insurance company’s end will cease to exist.

Step 4:  If you want to know how to cancel motor insurance in a swifter fashion, you may explore online processes. You can fill up information online, upload soft copies of documents and the cancellation request will be sent to the company.


Cancelling your motor insurance policy is a fairly straightforward process. The only task from your end is to be aware of the different steps applicable in this regard.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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