IRDAI Rules for Bike Insurance Renewal in India

IRDAI's Role in Bike Insurance Regulation

The IRDAI is India's primary regulatory body for the insurance sector. In the case of bike insurance, the authority mandates:

• Get at least mandatory cover (Third-Party Liability) under the Motor Vehicles Act.
• Defined timelines and rules for No Claim Bonus (NCB) continuity.
• Flexibility to switch insurers while retaining benefits.

Mandatory Renewal of Bike Insurance Policies

For new two-wheelers, insurers issue a 5-year Third-Party (TP) policy and a 1-year Own-Damage (OD) policy, as mandated since 2018.

According to IRDAI, any type of two-wheeler, whether a scooter or a bike, is not allowed to ride on Indian roads without valid third-party bike insurance. However, the Own Damage (OD) cover, which protects your bike against damage, theft, fire, or natural disasters, needs to be renewed annually. This means that even if your TP cover remains valid, you must ensure the timely renewal of your OD policy each year to stay fully protected.

Bike Insurance Renewal Timeline and Advance Renewal Rule

IRDAI recommends renewing your two-wheeler insurance policy at least 15 days before expiry. This allows adequate time for:

• Reviewing policy terms or comparing bike insurance plans online.
• Updating IDV or choosing add-ons.
• Ensuring no break in coverage.

If your policy expires, insurers are not liable for any loss or damage that occurs after the expiry date, even if the renewal is completed later.

Grace Period and NCB in Bike Insurance 

The No Claim Bonus (NCB) is a key renewal benefit that rewards you for not filing any claims during the previous policy term. It offers a discount on the premium, ranging from 20% to 50%, depending on consecutive claim-free years.

• IRDAI has recently revised the NCB grace period from 90 days to 120 days (effective 2025).
• If you go for bike insurance renewal within this extended window, you retain your accumulated NCB.
• If you miss this deadline, your NCB will lapse, and the discount will reset to zero.

Tip: Always renew within the grace period to maintain your NCB benefits.

Flexibility in Choosing Your Insurer

In June 2019, IRDAI introduced the unbundling of Own Damage (OD) and Third-Party (TP) covers, allowing policyholders to buy or renew them separately.

This means you can:

• Continue your TP cover with one insurer.
• Renew your OD cover annually with another insurer that offers better pricing or additional benefits.

This flexibility encourages competition among insurers and helps customers find more value-driven OD bike insurance policies at renewal time.

Consequences of Bike Insurance Policy Lapse

If you fail to renew your bike insurance policy before expiry, you might have to face the following consequences:

• Your vehicle will be uninsured, making it illegal to ride on public roads.
• You'll lose NCB benefits earned over the years.
• Insurers may require vehicle inspection before renewal.
• You'll bear the entire financial cost in case of an accident or theft.
• A lapsed policy can also attract a bike insurance challan of ₹2,000/- under the Motor Vehicles (Amendment) Act, 2019, which prescribes hefty fines for uninsured vehicles.

Carry Forward and Transferring of NCB

IRDAI allows policyholders to transfer or port their NCB when switching insurers.
To do this:

• Ask your previous insurer for an NCB certificate or renewal notice.
• Please provide this to your new insurer when purchasing or renewing your policy.
• The new insurer will apply the corresponding discount on your OD premium.
• This ensures that your claim-free history remains valid even if you change companies.

Online Bike Insurance Renewal Procedure (as per IRDAI Guidelines)

IRDAI promotes the use of digital platforms for seamless two wheeler insurance renewal. Here's the standard process most insurers follow:

• Visit the official website of Policybazaar Insurance Brokers Private Limited, and choose 'Two Wheeler Insurance'.
• Enter your vehicle registration number in the required field.
• Review your IDV, add-ons, and coverage.
• Make the premium payment online.
• Download the renewed policy document instantly.
• The new policy is issued immediately, and digital copies are considered legally valid proof of insurance under IRDAI and government norms.

Renewal of Expired Bike Insurance Policies

If your policy has already expired, you can renew it by following the steps below:

• You can still renew it online, but the insurer might inspect the vehicle before reissuing the cover.
• You will lose your NCB if renewal is done after the 120-day grace period.
• During the lapse period, your bike remains uninsured, so any losses or damages are not covered.
• IRDAI recommends avoiding such lapses, as frequent breaks in policy continuity can also affect your premium rating in future.

Key Tips for a Smooth Bike Insurance Renewal

To make the bike insurance renewal process hassle-free and IRDAI-compliant, follow these tips:

• Set reminders a few weeks before policy expiry.
• Renew bike insurance online for instant policy activation and paperless documentation.
• Verify insurer details on IRDAI's official website to avoid fraudulent intermediaries.
• Review your coverage and adjust IDV or add-ons based on your bike's age and condition.
• Use voluntary deductibles or anti-theft devices to reduce your premium legally.
• Keep soft copies of the renewed policy on your phone and the DigiLocker app for easy access during checks.

IRDAI's Consumer Protection Provisions

• IRDAI's Motor Insurance Service Provider (MISP) guidelines also ensure:
• Policyholders receive fair renewal reminders and disclosures.
• Insurers cannot force-sell unnecessary add-ons or bundled products.
• Customers can lodge grievances through the IRDAI's Integrated Grievance Management System (IGMS) if they encounter issues related to renewals.
• This transparency helps maintain consumer trust and ensures you get the right coverage at renewal without hidden terms.

FAQs- IRDAI Rules for Bike Insurance Renewal