While it is an obligation for new bike owners to buy the policy, it’s the old bike users who tend to ignore or delay their two wheeler insurance renewal. Your policy lapses when you do not pay the premium on time, and consequently, all rights and benefits become limited.
So, when you fail to renew your two-wheeler insurance what exactly happens?
Your No Claims Bonus (Or NCB) will be forfeited if the policy is allowed to lapse for more than 90 days. This may result in higher premium in the next cycle. In addition to this, you will be exposed to risks arising out of an accident and related third party liabilities. Your best bet in this scenario, would be two-wheeler insurance renewal.
Two wheeler insurance renewal when your policy has lapsed
You have to zero-in on an insurance company that offers the most competitive premium for your vehicle’s age and model. You can make use of online broking sites to compare the features of various insurance policies in the market. Now, online two-wheeler insurance renewal of break-in policies allows consumers to revive their policy without any inspection and minimal documentation.
However, be wary of the fact that the risk cover begins 3 days from the day of policy purchase and any damages to the vehicle before this period will not be covered by the insurer.
If you are planning to again take a policy with your previous insurer and the policy has lapsed, you can call your insurer to get more information on how to renew it again. After an inspection, you will be able to renew your insurance policy online.
To drive a two wheeler that is uninsured and without a valid third-party cover is a liable offence in India. Hence, it is very important to keep your two wheeler insurance policy up to date and valid. You can set up renewal reminders to help you renew your policy on time. Even if your policy has lapsed, you must take all necessary steps to renew it immediately so as to avoid having to pay dearly for an accident or an unexpected mishap.
- Protection of Legal Interests
You should be aware of the fact that third party insurance is mandatory which implies that the policy should cover liabilities arising out of damage/injury to a third party person/property. Renewal of bike insurance ensures your obligations as a bike owner are fulfilled. The cover provides monetary assistance in case of an unfortunate incident.
- Insurance Cover in Foreign Land
Cross border travel on motorcycles is a fad today. Having a two wheeler insurance pays for damages outside the Indian Territory as well. At the time of immigration, 2 wheeler insurance may be mandatory in the country/territory you’re traveling to. Therefore, renewing on time also helps in fulfilling the statutory obligations.
- Access to Discounts and Perks
Ensuring renewal of the insurance policy on time ensures that you remain eligible for discounts such as the No Claim Bonus (NCB). Break in policy period can lead to seizure of perks and discounts.
Things to keep in mind before Two wheeler insurance Renewal
- Keep a track of the policy validity dates and renew well in advance as per the timelines to save on additional costs such as Inspection Charges.
- Compare insurance offers online before applying. There may an insurer who will offer enhanced benefits at a cheaper price.
- Make use of discounts such as the No Claim Bonus (NCB) and consider increasing your share in Voluntary Excess to get a lower premium amount.
These days, you can even buy a two-wheeler insurance for 3 years which has come as a boon for two-wheeler users as it frees them from renewing the third-party liability policy every year. The fixed premium during the policy period saves them from the annual rate hike. Apart from this, they also get a benefit from the above-mentioned benefits.
The most important factor, being covered gives you a sense of security to ride confidently. It also saves you from fines imposed by enforcement agencies such as traffic police for not carrying a valid insurance. Two-wheeler insurance renewal is mandatory and not an option. Today, insurers offer hassle-free and instant online renewal process with just a click of a button as against the conventional mode. With the repercussions inclining towards legal and financial hassles, are you prepared to face them anytime, anywhere, and bear the burden, is a question you may want to ask yourself!