Will a lapse in insurance policy affect my CIBIL score?

If I let my insurance policy lapse, would it impact my CIBIL score in any way?
-Sanket Ajay Shah

Credit Information Bureau India Limited (CIBIL) collects and maintains records of an individual's payments pertaining to loans and credit cards. CIBIL scores are important for availing loans or credit card. This is because financial institutions generally check an individual's CIBIL score for any default history before providing credit approvals. It can also impact the terms of loan, such as the interest rate offered. However, a lapse in insurance policy will not affect your CIBIL score in any way.

This article was originally published on July 10, 2017.