When You Can Cancel the Bike Insurance Policy?
As a policyholder, you can cancel the policy at any time after the purchase. However, your insurer must be aware of the reason for canceling it. In addition, you must adhere to the terms & conditions of the insurer regarding the cancellation. Below are some of the most common reasons for bike insurance policy cancellation in India-
Selling the Bike
If you are planning to sell off your bike or scooter, it is your responsibility to cancel the policy. Even you can transfer the bike insurance policy to the new vehicle owner.
You may also read- Transferring Two-wheeler Ownership & Its Insurance
Theft of the Bike
If your insured bike is stolen and you cannot find it, you must cancel the two-wheeler insurance policy of the stolen bike. In such a case, you have to submit the FIR, Non-traceable Report, and other relevant documents (which may vary from insurer to insurer) to your existing insurance provider. Remember, you can raise bike theft claims under your comprehensive bike insurance policy.
Unsatisfied with Existing Insurer's Services
Another common reason to switch to a new company could be an unpleasant customer experience with your existing insurer or if you have found a more affordable plan. For cancelling the policy in such a situation, you have to share a copy of the new insurance plan (at least the mandatory third-party bike insurance policy) with your former insurer to confirm that you have basic coverage.
Process of Canceling the Bike Insurance Policy
Traditionally, you used to cancel the policy by writing an application to the insurance company stating the reason to cancel the policy. Along with it, you have to submit supporting documents.
However, with the digitalization in the insurance industry, the cancellation process has become quite easy. The rules of canceling might vary from insurer to insurer, but below is the common process followed by most of the motor insurance companies in India-
Intimate Your Insurer
Generally, you have to connect with your existing insurer’s customer assistance team to cancel the policy. You can find the insurer's contact details by visiting their official website or through their mobile application.
Email the Insurer
Generally, insurers may ask you to send an email stating the reason for policy cancellation. However, some insurers have a dedicated webpage or an exclusive feature available in their mobile application to cancel the policy and initiate the refund process.
Get the Certificate of Insurance (COI)
Once your bike policy is canceled, the insurer will send you a Certificate of Insurance. It includes the details of the canceled policy along with the accumulated No Claim Bonus (if any) until the date of cancellation. Make sure to issue this certificate to utilize this accumulated NCB while purchasing a new bike insurance policy.
Receive the Refund Amount
If you cancel your bike policy in the midterm of the policy period or soon after the purchase, the insurer may refund the premium amount as per the terms & conditions of the policy.
If you cancel the policy even before the start date of a policy, you are likely to receive a full refund.
If you cancel the bike insurance plan after the start date of the policy, you will receive a refund on a pro-rata basis.
Buy a New Bike Insurance Policy Online
If your reason for canceling the policy is 'switching insurer', you have to buy at least a third-party liability policy. However, buying a comprehensive bike insurance policy is optional. At Policybazaar.com, you can compare bike insurance online from more than 17+ insurers in India and find an affordable deal in your budget.
Documents Required to Cancel Your Bike Insurance Policy
You must have the following documents to cancel your bike insurance policy-
- Cancellation in case of sale of the bike
Sale Deed/Form 29
- Cancellation in case of theft of the bike
FIR copy, Non-traceable report, and other supporting documents
- Cancellation in case you are switching the insurer
Copy of the new two-wheeler insurance policy
Summing It Up!
If you are planning to discontinue the services from your existing insurer, you can easily cancel your bike insurance policy by following the steps discussed in this article. In case, you still face any issues, you can connect with your insurer's customer assistance team and get your refund back for canceling the bike insurance policy.
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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.
^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.
#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.
*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)
#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.
*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis