Understanding Grace Period in Two-wheeler Insurance Renewal

As a bike rider, you must be aware of the policy expiry date. When your policy is about to expire, your insurer starts sending you reminder messages to renew it. But still, people forget to renew their two-wheeler policy on time and end up losing coverage benefits. However, keeping the consumer’s interest in mind, the insurance company offers grace period. It is like a second chance an insurance company gives to the insured so that they can renew the expired insurance policy.

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Meaning of Grace Period in Two-wheeler Insurance Renewal

People who forget to renew their policy before the expiry date are given the privilege of the grace period. A grace period is another chance to renew a policy because the timely renewal of your two-wheeler insurance policy is important as riding a bike without it is a violation of rules.

However, people confuse it with policy coverage. This grace period is for renewing your expired policy to retain your accumulated bonus and it does not mean to keep your policy coverage intact. Also, it is given to the policyholder, so they do not have to go through inspection again.

The grace period is an extension of 30 days given to the policyholder after the date of expiry. Even some insurers offer more than 30 days period so that you can carry out the process of two-wheeler insurance renewal without any stress.

What If You Are Unable to Renew It Timely?

Your two-wheeler insurance policy lapses when you do not renew it on time. Also, you lose the accumulated NCB (No Claim Bonus) due to the non-renewal of the policy. It might include a discount of up to 50% which means a higher premium on two-wheeler insurance renewal or buying a new policy. Moreover, you are not protected against third-party liabilities and damages or losses arising in an accident.

Apart from the above-mentioned consequences, riding an uninsured bike is a legal offense that might include hefty fines or imprisonment for up to 3 months. According to Motor Vehicle 1988, it is compulsory to have at least third-party insurance cover. To stay in law, you must renew your two-wheeler insurance policy timely.

Significance of Grace Period in Your Policy

One of the important aspects of the grace period is not going through the inspection process again. Eventually, this inspection process increases the premium amount. Therefore, insurance companies provide a grace period with the previous premium rates. Also, it turns out to be a huge saving for the policyholders.

Understanding 90 Days Grace Period Regarding No Claim Bonus (NCB)

NCB is a bonus in the form of a discount offered by the insurer to their policyholder for not raising a single claim during their previous policy period. It is a discount that can go up to 50% for not raising claims for five consecutive years.

In case you are unable to renew your policy within the grace period i.e. 90 days from the expiry date, you end up losing your accumulated NCB. Therefore, 90 days grace period is provided for retaining your accumulated bonus of NCB.

Ways to Avoid Lapses in Your Two-wheeler Insurance Renewal

The best way to avoid lapses in your policy is to renew on time. Nowadays it has become very easy to keep track by signing up for an alert service on email or SMS from your insurer. Also, your insurance company starts calling you regarding your policy renewal before the expiry date.

However, another smart way to avoid these hassles of renewing your policy is to buy a long-term two-wheeler insurance policy with coverage of up to 3 years or 5 years. Choosing a long-term two-wheeler insurance policy over short-term or annual plans will help you in avoiding the annoyances of annual renewals along with some discounts on premiums.

Though the grace period is a great help, you don't need to rely on it entirely when you can renew it beforehand. While the effort taken by the policyholder for two-wheeler insurance renewal may not be as much, it is still the best thing to renew your insurance policy on time.

How to Renew Your Two-wheeler Insurance Policy?

As we have mentioned earlier also, insurers start giving a reminder call to their policyholders when the policy expiry date is near. But, there might be instances when you are out of town or busy with your work and choose to miss out on a call from them. In such cases, here is what to do next to get your bike insurance policy- connect with your insurer.

In such a case, the first step is to instantly call your insurance provider and ask them for assistance. Your insurance company might even renew your policy without charging a penalty if it is done only a few days past the expiry date.

Moreover, insurers do not prefer to go through an inspection process in cases where you have renewed your policy before expiry. You can renew your existing policy through online or offline modes. When renewing your bike insurance policy online, it is suggested to keep all the vehicle documents handy as you will be required to fill in the details on your respective insurer's website. If you prefer to renew it offline, you will have to visit your insurer's office, and your vehicle has to go through an inspection process before the issuance of a policy.


Now you must have understood the significance of the grace period. To ride your bike legally, you cannot escape from renewing your two-wheeler insurance policy. Also, you must adhere to all the traffic rules and follow safety measures while riding your bike. We recommend you to read your policy wordings carefully to know your coverage, exclusion, policy expiry date, grace period, etc.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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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