Introduction

Hidden car insurance gaps in Odisha are more common than most people realize. For many vehicle owners, the shock comes after an accident—when they discover their policy doesn’t cover crucial components or that exclusions were buried in the fine print. This guide explores six risky but avoidable insurance scenarios and how you can avoid falling into these hidden traps.

Whether you drive a daily-use hatchback through the busy lanes of Bhubaneswar or a two-wheeler on Odisha’s highways, this blog dives deep into six risky but avoidable car insurance scenarios that insurers often don’t fully disclose. If you want your insurance to truly work for you, especially in a claim situation, understanding these lesser-known factors is essential.

Car insurance may feel like a safety net, but it doesn’t always cover every risk that can come up without a valid one. From overlooked policy exclusions to underinsured scenarios, many car owners discover the gaps only when it is too late. This is why it is important to understand the less obvious risks hidden in your car insurance plan.
Many car owners rely on information from insurers or online platforms, but not all risks are openly discussed upfront. So, this guide will walk you through some risky situations that can trouble you, whether you have or do not have car insurance. 6 Risky Situations You Can Face That Not Every Insurer Will Inform You About Knowledge about car insurance is, anyway, not very widespread. On top of this, there are a few facts that might not come up while purchasing car insurance. This happens because certain occurrences are rare.
Therefore, there might be a few hidden car insurance aspects that you need to know, which can help you avoid risks in the future.

1. NCB Is Lost If You Don’t Renew on Time

No Claim Bonus (NCB) offers a big discount—up to 50%—on your premium when you don’t raise any claims. You earn this reward by maintaining a claim-free record during your policy period . But here’s what many don’t realize: if you fail to renew your policy within 90 days of its expiry, your NCB is gone—forever.

Let’s take an example. Suppose you’ve enjoyed a 50% NCB on your ₹10,000 premium, reducing it to ₹5,000. But if you delay renewal beyond the grace period, the next premium resets to the full amount. That’s ₹5,000 lost—just for missing a deadline.

For many in Odisha who rely on local agents or manual reminders, this small oversight can result in big losses. To avoid this, KlaimPower recommends using digital renewal alerts and our Insurance Policy Analyzer Tool to track expiry and benefits.

Related: Tips to Renew Your Car Insurance in 2024

2. Underinsured Cars Face Limited Coverage

Most people purchase third-party insurance because it’s legally required and cheaper. But what’s often missed is that it offers no protection for your own vehicle. Even a basic comprehensive plan doesn’t cover everything—it typically excludes:

• Engine or gearbox damage from water ingress

• Electrical accessory failures

• Depreciation costs during claims

• Personal accident cover (if not opted for)

In Odisha, especially during floods or high rainfall in places like Cuttack and Bhadrak, engine damage due to waterlogging is a real risk. Without proper add-ons like Engine Protect or Zero Depreciation, policyholders often pay repair costs from their own pocket.

At KlaimPower, we’ve seen this pattern repeatedly. Many users believe they’re “fully covered” until they realize what isn’t included. That’s why we built our Motor Insurance Coverage Guide—to help you understand the real extent of your protection.

3. Accidents Affect Future Insurance Eligibility

Getting into accidents not only raises your current premium but can also make future insurers wary. In Odisha, where claim fraud or repeated accident claims are flagged quickly, your Claim History Report becomes a critical factor.

Insurers access your claim track record via centralized databases. If your car has been involved in frequent accidents—regardless of fault—they may:

• Increase premiums significantly

• Deny add-on benefits

• Ask for vehicle inspections before policy approval

• Or, in some cases, reject your application

Younger drivers especially face problems when their accident history impacts their insurance eligibility. A single mishap can haunt your profile for years. That’s why KlaimPower encourages safe driving and helps clients access accident-free driving certificates to reduce insurance load.

Want to see how your history impacts your premium? Try our Insurance Claim Mistakes Checker.

4. Car Insurance Is a Legal Requirement in India

It’s shocking how many still treat car insurance as optional. In India, the Motor Vehicles Act, 1988 mandates third-party liability insurance for all vehicles operating in public spaces. If you’re caught without it:

• You face fines of up to ₹4,000

• Your vehicle can be seized

• You risk criminal charges for negligence

In Odisha, enforcement is becoming stricter. Traffic police in Bhubaneswar, Rourkela, and Berhampur frequently conduct checks and issue challans for uninsured vehicles.

Still, many buyers delay purchasing insurance while buying a second-hand vehicle or don’t transfer the insurance from the previous owner. Don’t fall into this trap. KlaimPower’s Legal Support helps vehicle owners fix these legal gaps quickly and affordably.

Outbound Resource: Motor Vehicles Act – Govt. of India

5. NCB Can Be Transferred—If You Know How

Contrary to popular belief, your NCB is linked to you—not your car. So when you switch insurers or sell your car and buy another, you can transfer your NCB benefit. All you need is:

• An NCB Transfer Certificate from your old insurer

• Proof of no claims

• A valid new policy within the transfer period

Yet many lose this benefit because they don’t know how to request the certificate or submit it in time. In Odisha’s tier-2 cities, where paper processes still dominate, agents may overlook this step.

KlaimPower walks you through the entire NCB transfer process via our our Services Page so that you don’t leave money on the table when switching or upgrading your policy.

Outbound Resource: IRDAI Guide on NCB Transfers

6. Never Repair Your Car Without Informing the Insurer

Claim rejections often happen when vehicle owners repair cars without informing the insurer.

If your vehicle gets damaged and you go ahead with repairs without informing your insurer, Insurers often deny claims in such cases. Why?

Because insurers need:

• Proof of accident timing

• Inspection reports before repair

• Photos of damage before any changes

Without this, they can’t verify if the damage was new or old—and may dismiss the claim entirely. This is especially crucial in theft, vandalism, or hit-and-run cases, which require FIRs and timely insurer notification.

For better claim outcomes, use our Insurance Policy Analyzer and get repair reporting templates from our Legal Helpdesk.

Consumer Helpline Portal

Conclusion: Don’t Just Buy Insurance—Understand It

Having car insurance isn’t enough. True protection comes from knowing what your policy excludes, spotting hidden clauses early, and taking timely action.

Many policies contain hidden risks—like missing add-ons, depreciation clauses, or vague claim procedures—that can catch you off guard during an emergency. These gaps can cost you both money and peace of mind.

So, don’t wait until a claim gets denied. Read every clause. Ask questions. Make sure your policy matches your needs and usage.

From missed NCB renewals to underinsured scenarios, these six overlooked risks can cost you far more than just money—they can leave you stranded, frustrated, and legally vulnerable. Whether you’re a working professional in Bhubaneswar or a two-wheeler rider in Cuttack, your insurance must match your usage, risk profile, and legal requirements.

At KlaimPower, we believe in Insuring Your Rights. Use our tools like the Policy Analyzer, Accident Compensation Calculator, and Legal Support System to take control of your vehicle protection.