Consequences of Expired Two Wheeler Insurance Policy
As per the law in India, a third-party bike insurance policy for all two-wheelers is mandatory. However, renewing it on time is even more important because expired two-wheeler insurance can put you in serious legal troubles along with zero financial security and many more.
According to the Motor Vehicle Act, it is mandatory to have at least third-party insurance protection cover for all motor vehicles registered in India. This third-party insurance policy fulfills the legal liability and protects you from financial third-party liabilities coming out of an accident. But when you have an expired insurance cover, these liabilities will not be covered under your insurance coverageand eventually result in heavy penalties.
No Financial Security
Purchasing third-party is mandatory however, purchasing a comprehensive two-wheeler insurance policy depends on the two-wheeler owner. To get coverage for own damage, theft, loss due to natural calamities, two-wheeler owners must have a comprehensive insurance plan. However, be it a third-party or comprehensive insurance plan, one must keep renewing the insurance policy on time otherwise the insurer will not provide coverage and the bike owners will have to pay for the loss and damages out of their pockets.
Loss of No Claim Bonus
No-claim bonus or NCB is the bonus offered by an insurance company in a form of discount on the premium for not raising a single claim during the policy tenure. You will lose this accumulated NCB if you do not renew the policy within the grace period of 90 days provided by the insurer to activate your insurance policy if you have forgot to renew it on time. The discount offered in NCB goes up to 50%.
So, you must avoid missing two-wheeler insurance renewal and take advantage of these no-claim bonuses.
Things To Do After Expiration of Two-Wheeler Insurance
As a policyholder, you will receive reminder calls for the renewal of the policy from your insurer. Sometimes your insurer can be generous and may renew your policy without asking for a penalty if it is a few days past the due date. However, here’s how you can renew your insurance policy online as well as offline.
Renewal of Expired Two-Wheeler Insurance Online
The online two-wheeler insurance renewal process is quite simple. With the adaptation of digitalization, the Two-wheeler insurance renewal process has become quick, easy, and hassle-free. While renewing the policy, visit the website of the insurance provider or the mobile application. Fill in the details like policy number and date of birth for viewing your policy. And to complete the renewal process, make the payment. Also, online two-wheeler insurance renewal gives more exciting offers & discounts as compared to the offline process.
Renewal of Expired Two-Wheeler Insurance Policy Offline
An offline bike insurance renewal online is when the insurer as well as the insurance agent are physically present in the process. This method is one of the oldest yet common. It is for those who are not updated with technology. For the offline renewal process, you have to follow the below steps-
- Submission of the required documents to the insurer.
- Inspection of your motorbike by the surveyor.
- After approval from the surveyor, the renewal process begins.
- Receive policy through the post.
Note- Buying/renewing a two-wheeler insurance policy through offline mode can be costly and includes the agent's commission as well.
Avoid Policy Lapse
The best way to avoid policy lapse is by keeping track of the due date with an email/SMS alert service. Also, many insurers will call you and remind you about the expiration of the policy on time. This will help you keep a track of the expiration date.
Points to Keep in Mind Before Renewal
While renewing your two-wheeler insurance policy, you can compare the available options online and decide whether you want to continue with the same insurer or you want to switch to another. In case of renewal of the policy, here are a few points you should keep in mind.
- Ask for No Claim Bonus-If you have been a policyholder for a year and not raised any claim during the tenure, you can ask for the implementation of NCB during the renewal. Many insurance companies provide discounts between 15 to 20% on the premium as a No Claim Bonus.
- Relook at your coverage-During the renewal of your two-wheeler insurance, you can ask for the addition or subtraction of add-on covers as you are familiar with the benefits. You can design your insurance plan as your budget, suitability, and requirement.
- Check your information carefully-Go through all your details, find the error, and rectify it. Also, read the terms and conditions of the policy again. Get in touch with your insurer if you have any doubts regarding T&C.
Summing It Up
Two-wheeler insurance renewal is one of the most vital responsibilities of bike owners. The expiry date in an insurance policy might be a small detail that a policyholder usually forgets.
Therefore, for the safety of your bike and own life, keep a check on your insurance policyand renew it on time.
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