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Impact Of Riding a Bike With a Lapsed Two Wheeler Insurance

Published on July 26, 2019. EST READ TIME: 5 MIN

Not renewing your two-wheeler insurance not only denies your claim but can also lead to legal liabilities. As we know buying a third-party  two-wheeler insurance policy is mandatory in India however, there are times when bike owners miss out on the renewal and end up riding the bike with an expired policy. As per a study, over 75% of two-wheeler owners in India are uninsured. However, if you are one of the 75% of the people who have not renewed the bike insurance policy yet, then it’s time you know the impact of two-wheeler vehicle with a lapsed insurance policy.

Read below to understand the impact of riding a bike with a lapsed two wheeler insurance policy.

You become legally liable: A comprehensive two wheeler insurance cover offers you overall coverage in case of an untoward event; it covers claim for the damages caused to your two-wheeler as well as third-party or property. On the other hand, it is important that you understand that the third-party insurance cover is a mandatory requirement as per the Motor Vehicle Act. Hence, if you are roaming without a valid two wheeler insurance policy and you end up causing an accident, then the situation can get worse for you and land you in a major financial and legal trouble. Additionally, if your two wheeler meets with an accident, then your out-of-pocket expenses would increase as you will have to bear the repair costs for the same.

You will lose out on the no claim bonus: No claim bonus is a reward offered by an insurance company for every claim free year. NCB ranges from 20%-50% and is valid for a period of 90 days from the policy expiry date. In case you do not insure your two-wheeler within the said period, then you lose out on the said benefit.

You end up paying hefty penalties: Riding a two-wheeler without a valid third-party two wheeler insurance policy is a mandatory requirement as per the Motor Vehicles Act, 1988. Hence, if you are caught without the valid insurance policy, then you may end up paying a hefty fine of up to Rs. 1,000.

In a nutshell

Riding a two-wheeler with a lapsed motor insurance policy is likely to put your financial future at risk and also take away your peace of mind. Hence, timely renewal of the policy is imperative to ensure you don’t end up bearing any expenses from your pocket. With bike accidents and theft cases on a rise, the best way to stay secured in such situations is to insure your bike with a comprehensive two wheeler insurance policy. You never know when an accident can turn your life upside down. So better stay safe than being sorry!

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

This blog has been written by

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

S. Gopalakrishnan recommends "HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process".

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