In India, it is mandatory for all two-wheelers to have a third-party liability policy. It is illegal and not advisable to ride a bike on the roads without a valid bike insurance policy. When you buy a third-party, comprehensive, or own damage bike insurance policy, it has a term for which it is valid. You are required to renew the policy within time to keep it in force.
While you should renew the two-wheeler insurance policy on or before the last date of the term, most insurers offer a 90-day grace period for bike insurance renewal. Failure to renew it within this period can result in the policy lapsing. Hence, you will have to buy a new policy and forgo all benefits of your earlier one. Today, we are going to talk about the importance of renewing your bike insurance policy in time to avoid a lapse.
Understanding Bike Insurance Policy Lapses
If you do not renew your bike insurance policy within the stipulated grace period offered by the insurer, then your policy can lapse. If this happens, then you lose all the No Claim Bonus (NCB) accumulated through your bike insurance over the years. NCB can stack up to around a 50% discount on the premium amount.
Hence, when you buy a new policy after your current one lapses, the premium amount would be much higher than that of your existing policy. Further, with bike insurance lapsed policy, you will not be covered for any damages and might have to pay a fine if you are caught riding your bike without an active insurance policy.
What Can You Do If Your Bike Insurance Policy Has Lapsed?
If you are wondering how to renew lapsed bike insurance? Here is the answer. While insurers tend to send reminders to policyholders before the last date of the policy, many people miss the window to renew it and are left with a lapsed bike insurance policy. If you have missed the renewal date of your policy, then you need to contact the insurance company and ask for the next steps. Insurers might allow you to undertake lapsed bike insurance renewal even after the grace period depending on their internal policies.
How to Avoid Two-Wheeler Insurance Policy Lapses?
If you want to avoid lapses in your bike insurance policy, then you need to renew it in time. Here are some tips:
Renew your bike insurance policy online
Traditionally, policyholders were required to visit the branch of the insurance company to renew their policies. Also, many insurers insisted on bike inspection at the time of renewal. However, in recent years, insurers have started offering online bike insurance in India renewal options with no inspection requirement.
All you need to do is enter the details of your vehicle and policy and get the renewal done in no time. This is particularly beneficial to policyholders who tend to miss out on renewal dates due to their busy schedules and inability to visit the branch office of the insurer.
Opt-in for SMS/Email alerts
Most insurers offer an SMS/Email alert service to remind policyholders of renewal and other important dates of the policy. By opting in for these alerts, you can be assured of being reminded of the last date so that you can complete the renewal process within time.
Look for long-term bike insurance policies
Typically, the term for online bike insurance in India is one year. However, in recent years, many insurance companies have started offering long term two-wheeler insurance policies with terms stretching up to three years. This can save you the hassle of renewing your policy every year and reduce the chances of policy lapses due to the non-renewal of policy on time.
There are two primary reasons for ensuring that your policy is renewed on time. First, it is illegal to ride a two-wheeler without an active insurance policy. Second, a lapsed policy does not cover any damages. Hence, it is prudent to renew your bike insurance policy within the specified timelines.
Assess your lifestyle and look for ways that can help you submit the renewal request within the grace period. Online policy renewals can help you avoid such lapses since you can renew your policy from wherever you are. If you are not satisfied with your current insurer or policy, then the renewal period is a good time to change it. Ensure that you keep tabs on the renewal date and avoid policy lapses. Good Luck!