If you are stuck in such a situation, here is what to do.
Mr. Rohan Sharma, a resident of Navipur, recently faced a distressing situation with his car insurance provider, Apex General Insurance. He had diligently paid a premium of Rs. 11,500 on July 20, 2026, through SecurePay Gateway to renew the insurance for his Sedan Swift VXI, with the registration number KA 05 XY 1234. The new policy was meant to be effective from July 25, 2026, to July 24, 2027.
The insurance company had assured Mr. Sharma that the renewed policy document would be issued by July 23, 2026. However, despite this assurance and numerous follow-ups, including emails and calls that led to the generation of a complaint number (Case ID 98765432), the company failed to provide the policy. Consequently, his previous policy lapsed on July 24, 2026, leaving his vehicle uninsured.
This lapse has put Mr. Sharma in a precarious position. He is now legally barred from driving his car and is completely exposed to significant financial liability in the event of an accident or theft. The act of collecting a premium without providing the corresponding insurance cover constitutes a severe deficiency in service and an unfair trade practice by Apex General Insurance. Frustrated with the lack of resolution, he has escalated the matter by filing a formal complaint with the Insurance Regulatory and Development Authority of India (IRDAI).
Advice in such cases
Document Everything: Keep meticulous records of all transactions and communications. This includes the payment receipt, bank statements, emails exchanged with the insurer, call logs, and any reference or complaint numbers provided.
Send a Formal Complaint: Draft a formal written complaint and send it to the insurance company’s designated Grievance Redressal Officer. This is a mandatory first step before approaching the regulator.
Escalate to IRDAI: If the insurer does not resolve the issue within 15 days, you can escalate the complaint to the IRDAI through their Integrated Grievance Management System (IGMS). This puts regulatory pressure on the company.
File a Consumer Complaint: You have the right to file a complaint before the appropriate Consumer Disputes Redressal Commission for deficiency in service. You can claim not only the issuance of the policy but also compensation for the mental agony and potential risks you were exposed to.
Do Not Drive the Vehicle: It is illegal and extremely risky to drive a vehicle without a valid third-party insurance policy. Until the policy is issued, avoid using the car to prevent legal penalties and financial losses.
Consult with Lawyer: Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
Applicable Sections of Law
This issue is primarily governed by civil and consumer protection laws, not criminal statutes like the Bharatiya Nyaya Sanhita (BNS). The relevant legal frameworks are:
The Consumer Protection Act, 2019: The failure of an insurance company to issue a policy after accepting the premium is a clear case of “deficiency in service.” A consumer can seek redressal, including forcing the issuance of the policy and claiming compensation for harassment and potential loss.
The Indian Contract Act, 1872: The payment and acceptance of a premium form a contract of insurance. The insurer’s failure to provide the policy document is a breach of this contract, for which legal remedies can be pursued.
Insurance Act, 1938 and IRDAI Regulations: These laws govern the conduct of insurance companies in India. IRDAI has laid down strict timelines and procedures for policy issuance and grievance redressal, the violation of which can lead to penalties against the insurer.
The Motor Vehicles Act, 1988: While this Act does not govern the insurer’s conduct, it mandates that every vehicle must have valid third-party insurance to be driven on public roads. The lack of a policy due to the insurer’s fault exposes the owner to penalties under this Act.
If you are the complainant
Organize Your Documents: Systematically arrange all proofs, including payment confirmation, past policy details, and all correspondence with the company.
Issue a Legal Notice: Through a lawyer, send a formal legal notice to the insurance company. This notice should detail the deficiency in service, demand the immediate issuance of the policy, and claim compensation for the period the vehicle remained uninsured. This often prompts quick action.
Approach the Consumer Commission: If the legal notice is ignored, file a formal complaint with the District, State, or National Consumer Commission based on the value of the claim. You can represent yourself or hire a lawyer.
Utilize the IRDAI Portal: Simultaneously, ensure your complaint on the IRDAI’s IGMS portal is active and you are following up on it.
Consult with Lawyer: Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
If you are the victim
Prioritize Safety and Legality: Your immediate priority is to avoid legal trouble. Do not drive the car. Arrange for alternative transport if necessary. The risk of an accident without insurance is too high.
Inform the Financier: If your car is under a loan, the bank or finance company is a party to the insurance. Inform them in writing about the situation, as it also violates the loan agreement terms.
Consider a New Policy: If the matter is not resolved quickly, you might consider buying a new policy from a different, more reliable insurer to get your car back on the road legally. You can then continue to pursue the first company for a refund of your premium and compensation.
Consult with Lawyer: Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
How the police behave in such cases
The police have a very limited role in such disputes. This is a contractual and service-related issue, which falls under the jurisdiction of consumer courts and regulatory bodies like IRDAI, not the police. The police will not register an FIR against the insurance company for not issuing a policy. Their involvement will only occur if you are caught driving the uninsured vehicle. In that scenario, they will issue a challan (fine) under the Motor Vehicles Act, 1988. They would rightfully advise you to approach the consumer forum for your grievance against the insurer.
FAQs people normally have
What evidence is required?
To build a strong case, you will need the following evidence:
Proof of Payment: Bank statement, credit card statement, or digital wallet transaction history showing the debit of the premium amount.
Payment Confirmation: The receipt or confirmation email/SMS from the payment gateway or the insurance company itself.
Renewal Proposal: A copy of the renewal notice or the online application form you filled out.
Communication Trail: All emails, letters, and records of phone calls (with dates, times, and person spoken to) with the insurance company.
Previous Policy Document: To establish the context of the renewal.
How long will the investigation take?
The timeline for resolution can vary:
Through IRDAI: Once a complaint is lodged on the IGMS, the insurance company is typically required to provide a resolution within 15 days. The entire process through the regulator can take a few weeks.
Through Consumer Commission: Legal proceedings in a consumer court are more time-consuming. A case in the District Commission can take anywhere from 6 months to over a year to be decided, depending on the complexity and backlog of cases.
Advocate Sudhir Rao, Supreme Court of India