How to Revive Expired Bike Insurance Policy?
This blog has been published on June 19, 2020, EST READ TIME: 5 minutes
In India, it is mandatory to insure two wheelers as it safeguards you against any out-of-the-blue incidents like accidents, fire and explosion, theft, natural calamities, third party liability, among other reasons. And renewal of the insurance policy is also a must before the policy expires. If renewed on time, there are several benefits like No Claim Bonus or most importantly, the much needed peace of mind.
In fact, insurance companies continuously remind the customer when the policy is nearing expiration. Just in case, if you are unable to renew on time, your policy will lapse. Expired insurance policy can lead to drastic scenarios as it is illegal in India to ride a vehicle with an expired / no insurance policy. However, you can always go for bike insurance renewal even after expiry.
What happens if you ride a two wheeler with an expired insurance policy?
Once your bike insurance policy has expired, you are not liable to receive any coverage or claim in case of any damages. You can also run into legal issues. If you are still unaware of the impact, then read the following:
- No coverage: In case of an incident, a comprehensive two wheeler insurance offers you overall coverage. It covers the damage caused to your bike even third-party coverage. However, if the policy has lapsed, you have to pay for the expenses incurred from your own pocket.
- Resulting third party liabilities: Most importantly, the third party insurance is mandatory as per Motor Vehicle Act. Hence, if you are riding after your policy has expired, and you meet with an unfortunate accident, then you can land in legal issues. Moreover, a major financial trouble can arise due to out-of-pocket expenses related to repair costs.
- Loss of No Claim Bonus: A reward called No Claim Bonus (NCB) is offered for every claim free year by an insurance company. It usually ranges from 20%-50% and it stays valid for a period of up to 90 days from the date of policy expiration. By chance, if you fail to insure your two-wheeler within this period, then you lose the said benefit.
- Huge penalties: Riding a two-wheeler with an expired insurance policy can invite hefty penalties, which can be a fine of INR 2000 or in some cases, you can be put behind bars. The main reason of policy renewal is that it gives you a sense of security and you can ride freely anytime anywhere.
How to Renew Expired Policy: Renewal of expired bike insurance policy can be done online in three simple steps.
Step1: Go to the company website, select the premium using premium calculator and get the best deal that suits your requirements.
Step 2: Next, fill in all the personal details, and also provide vehicle and nominee details.
Step 3: Once you have filled all the relevant fields, make the payment online through various payment methods.
Reviving an expired bike insurance policy is not really a hassle. But it’s better to be safe than sorry. So, renew your policy on time and safe driving!