As per Indian Motor Vehicles Act, every two-wheeler needs to mandatorily have active third-party 2 wheeler insurance if you want to take your bike out on the road. Therefore, when you purchase a new two-wheeler, you usually buy a bike insurance policy. However, the premium paid when buying the policy keeps your bike insurance active only for the period specified in it.
Once it expires, you are required to renew it or buy bike insurance online. Unfortunately, since bike insurance is not something you need every day, many bike owners tend to forget the renewal date and risk riding the bike with an expired policy. This article will discuss the importance of two-wheeler insurance renewal and the risks you carry if you don’t renew bike insurance on time.
Importance of Renewing Bike Insurance Policy
Here are the top reasons for renewing your bike insurance policy on time:
As per the Motor Vehicles Act, it is mandatory to have an active third-party two-wheeler insurance policy for all two-wheelers registered in India.
Third-party insurance means that in the event of your bike getting into an accident or mishap, any damage done to a third person or property will be covered by the insurance policy. However, damages to you or your bike will not be covered.
Traffic police have the right to demand to see the insurance papers of your bike at any time. If your policy has expired, you might have to pay heavy fines.
While there are different types of bike insurance policies available, a policy offering third-party liability protection is mandatory in India. If your insurance policy has expired and in the unfortunate event of your bike getting into an accident or mishap, any third-party damage will have to be borne by you. This expense can be avoided by ensuring that your policy is renewed in time.
insuranceTheft and Severe Damage Protection
If your bike gets stolen or suffers severe damage, the financial implications can be high. With the right bike insurance policy and add-ons, you can be assured of being covered for any such losses. However, the benefit offered by the policy is available only if it is active and renewed on time. Otherwise, the premium you pay over the years can fail to get you covered when you need it the most.
Missing out on No Claim Bonus
If you don’t raise a single claim during the tenure of the policy, then most insurers offer a discount on the premium at the time of renewal of the said policy. This is the No Claim Bonus or NCB. However, if you fail to renew the policy within 90 days of the date of its expiry, then you risk losing this bonus. NCB increases for every subsequent year that you don’t file a claim. It can go up to 50% of the premium amount.
What to Do If Your Bike Insurance Policy Has Expired?
If your bike insurance policy has expired, then the first thing you must do is ensure that you don’t ride it until you buy a new policy. Nowadays, most insurers are offering an online two-wheeler policy for bikes.
Visit the websites of bike insurers like Tata AIG and compare two-wheeler insurance policies. Make sure that you choose the appropriate set of add-ons and compare two wheeler insurance online. Also, pay attention to the reviews written by existing customers to assess the claim settlement process and after-sales service offered by the insurer.
Even if your policy has lapsed, try to ensure that you renew it within 90 days to keep your No Claim Bonus benefit.
If you opt for a comprehensive policy while renewing your policy, make sure that you factor in any changes or additions that you might need to add to boost protection. Also, cross-check your information carefully.
An expired two-wheeler insurance policy exposes you to many risks. Apart from having to bear fines as per law, if you meet with an accident or a mishap, the costs for any damage (own or third-party) will have to be borne by you. Hence, it is prudent to keep a reminder about the expiry date of your policy. With most insurers offering two-wheeler insurance renewal online, the renewal process can be completed in a hassle-free manner. If you own a two-wheeler, ensure that you renew your policy on time to avoid these hassles.