Renew expired two-wheeler insurance: All you need to know!

It might happen sometimes that you fail to renew your two wheeler insurance before the due date. It could be due to any reason—such as a lack of money or you forgot the policy expiry date. This would result in the expiration of your bike insurance policy. And as per the Motors Vehicle Act, you cannot ride a two-wheeler without valid bike insurance. Below is a quick guide to help you understand how to renew your policy after it has expired.

What is a bike insurance policy?

Bike insurance is a contract between the policyholder and the bike owner, in which the latter agrees to offer specific financial assistance and services in return for a premium.

With comprehensive bike insurance, the insurance provider is obligated to protect the bike owner against almost all losses resulting from accidents. Therefore, you may bid farewell to financial losses brought on by your own damage, accidents, and bike.

All bike owners are required by the Motor Vehicle Act of 1988 to carry third-party two-wheeler insurance to legally ride their bikes on Indian roadways. If you are found without a valid policy, you risk a fine from the authorities. (Source: Indian Kanoon)

This safeguards both the bike rider’s interests and those of any third parties who might sustain losses caused by the insured bike.

The third-party insurance policy provides coverage for any harm or losses caused to a third party. Even though it spares you from the unnecessary burden of unforeseen financial hardships, it does not cover the costs of repairing your bike. You need to have a comprehensive plan for that.

What is an expired or lapsed bike insurance policy?

If not renewed on time or before the due date, a two-wheeler insurance policy lapses or expires. A policy’s benefits cease to be valid as soon as it expires, rendering it useless.

Consequences of a lapsed bike insurance policy 

If you fail to renew two wheeler insurance on its due date, you may have to bear some consequences

Legal repercussions: As discussed before, according to the Motor Vehicles Act of 1988, if two-wheeler owners lack third part insurance while driving on Indian roads, the penalty for first-time offenders for breaking this law is up to three months in jail and/or a fine of Rs. 2,000. (Source: Indian Kanoon)

Personal expenses: If you don’t renew two wheeler insurance before its expiration date, you won’t be financially covered by the policy. Therefore, if you are involved in an unforeseen incident, you will be responsible for paying for everything out of your own pocket.

Losing no claim bonus (NCB): No claim bonus or NCB in two-wheeler insurance is a discount on the premium awarded for successfully finishing a claim-free policy term. After five consecutive claim-free years, you are eligible for discounts of up to 50%. However, if you wait more than 90 days to renew your bike insurance after it expires, you risk losing your accrued NCB permanently.

Purchase a new insurance policy: Another consequence of not renewing your policy on time is you will have to buy a new policy altogether. This might also include a thorough inspection of your bike. This process will consume more of your time and money in comparison to timely bike insurance renewal.

Offline vs. online bike insurance policy renewal

Considering the wide number of benefits of renewing your bike insurance policy online, it is indeed a much smarter choice to go for online renewal than offline. Online renewal saves you the time-consuming headache of documentation, travelling time, and procedural delays. If you register online, you will also get reminders, which lowers the likelihood of you forgetting to renew your insurance.

Renew bike insurance online

The right time to renew two wheeler insurance is before it expires.  If your bike insurance has expired, you run a greater risk of facing penalties and having no insurance coverage. However, here’s how to renew a two-wheeler insurance coverage online after it has lapsed.

  1. When it’s time for renewal, you have the option to modify your insurance policy coverage. Therefore, be assured that you understand your new requirements.
  2. Go to the website of your insurer and enter details of your two-wheeler and the previous policy.
  3. Choose a bike insurance plan that satisfies your needs. It is advised to get a comprehensive bike insurance policy as it offers extensive coverage.
  4. Set the bike’s insured declared value, or “IDV.”
  5. The policy documents will be delivered to your mailbox once you make the payment online.

As soon as you receive the policy document, be sure to double-check the information. If there are any errors, get in touch with the insurer and use the policy endorsement procedure to make the necessary changes.

Steer clear of the hassle of yearly renewal!

The most accurate and most appropriate method to ensure the continuity of your insurance coverage without the hassle of yearly renewals is opting for a long-term two wheeler insurance policy. Long-term plans provide you coverage of up to 3 years. Hence, saving you from the trouble of remembering your renewal date.

The advantages of a long-term policy are as follows: 

  • It relieves you of the duty of always remembering the policy due date. For those who have several insurance policies, this is a highly beneficial choice.
  • It protects you against the dangers of non-renewal, including challan.
  • Since you chose long-term comprehensive bike insurancecoverage, you are immune to annual changes in the premium rate due to inflation.

So, no matter how much you enjoy living on the edge, riding an uninsured two-wheeler is something you should never be doing. It not only poses risks for your bike and yourself but also holds you accountable for any legal and financial repercussions. An expired or lapsed policy is like playing with fire when wanting to escape this vulnerability. So, renew two wheeler insurance right away and ensure financial security for you as well as your vehicle!

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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