Steps to Renew a Lapsed Two Wheeler Insurance Plan

Posted on: Feb 28, 2023 | | Written by: HDFC ERGO Team

Steps to Renew a Lapsed Two Wheeler Insurance Plan

Two-wheeler insurance is a key tool that helps you secure your vehicle against unforeseen losses resulting from own damages and third-party liabilities. It has a fixed tenure, usually a year, and you need to renew it before expiry to continue enjoying its coverage benefits. Although renewing bike insurance is a fast and hassle-free process, there are several instances where some bike owners fail to do so on time.

Failing to renew a two wheeler insurance can cause the policy to lapse, making you lose your accumulated benefits and leaving you out of coverage. In this blog, we have listed the various disadvantages of a lapsed policy and steps on how to renew expired insurance for bike.

What is a Lapsed Two Wheeler Insurance Policy?

All the insurance policies have a fixed tenure associated with them. For standard two-wheelers, the tenure is usually one year. However, you can now opt for long-term two wheeler insurance plans as well. Should you fail to renew the policy before its expiry, it is deemed a lapsed policy. A lapsed policy is similar to not having insurance in the first place. Insurance companies will stop offering you the coverage benefits of the plan if you are holding on to a lapsed policy.

How to Renew a Lapsed Two Wheeler Insurance?

There are a couple of ways in which you can renew expired bike insurance. Here’s how to renew expired bike insurance via online or offline methods:

1. Steps for Online Renewal

◦ Collect details such as the previous policy and vehicle registration number.

◦ Visit the website or app of your insurance provider.

◦ Provide the details of the bike on the website or app.

◦ Check policy and coverage details carefully.

◦ Make changes to coverage, if and as required.

◦ Get the final quote and pay the premium online to complete your two wheeler insurance expired renewal.

2. Steps for Offline Renewal

◦ Visit the nearest branch office of your insurance provider.

◦ Bring along all essential documents, including the vehicle RC and lapsed policy details.

◦ Request policy renewal and submit the necessary form alongside the attached documents.

◦ Go over the coverage, make adjustments as you deem necessary and verify everything.

◦ Get a quote, pay the premium and complete the renewal of your lapsed two wheeler insurance policy offline.

Key Considerations for a Lapsed Bike Insurance Policy

Here are some additional details you must know about renewing a lapsed bike insurance policy:

1. Grace period:

If the two wheeler insurance policy is not renewed within the stipulated time, it is considered expired. However, insurers offer a grace period after the expiry date, within which you can renew expired bike insurance and retain your accumulated benefits. The grace period can range up to 90 days after the date of expiry.

2. Vehicle inspection:

If your bike insurance policy has lapsed for a significant amount of time, the insurer may require a compulsory physical inspection of your vehicle before issuing a new policy. This is done to assess your vehicle’s condition and ensure everything is in place.

The Consequences of a Lapsed Policy

There is a fair bit of loss that a bike owner must incur if they fail to renew the policy on time. Here are some of them:

1. Expenses out of your pockets:

Since you do not have the perks of two wheeler insurance, you are liable to pay for all the damages. In the unfortunate event of an accident, the owner of the bike will have to pay for the third party and their own damages out of their pockets. So, in case of a lapse, you must renew expired two wheeler insurance online to ensure uninterrupted coverage.

2. Losing out on NCB:

No claim bonus or NCB is a discount that insurance providers offer to policyholders for claim-free years. This discount can help you reduce the policy premiums on renewal. If you fail to renew expired bike insurance even within the grace period, you can lose all your accumulated NCB.

3. Hefty penalties:

The Motor Vehicles Act of 1988 makes it mandatory for two-wheeler owners to have a valid insurance policy. If you ride your bike or scooter on a lapsed policy, you can be subjected to hefty penalties. This includes paying a fine of INR 2,000 for the first offence and/or imprisonment of up to 3 months.

4. Buy a new policy:

If you do not renew your lapsed two-wheeler insurance policy even within the grace period, you will not be able to renew it anymore. You must buy a new policy for your bike, which can mean going through the process of buying new bike insurance all over again. It can be time-consuming and might cost you more money as. well

Steps to Ensure Timely Bike Insurance Renewal

Now that you know how to renew expired bike insurance online or offline, note that it is best if you renew on time to maintain continuous coverage. Here are a few steps that can help you to avoid a bike insurance expired policy:

1. Check regularly:

Keep track of your emails and SMS since insurance providers usually send notifications for renewal.

2. Set up a reminder:

Put a reminder on your smartphone so that you do not miss out on policy renewal. It is a key step to avoid a two wheeler insurance expired policy.

3. Long-term plans:

You can opt for long-term two wheeler insurance. You can either buy the policy for two years or three years. Thereby reducing the chances of missing out on policy ren.ewals

Is it Mandatory to Opt for Add-ons During Renewal?

As per the law, a third party bike insurance policy is the only mandatory requirement. You are not required to opt for add-ons during policy renewal. However, add-ons can extend the benefits of your policy and help you customise your plan. Some of the most popular add-ons include zero depreciation cover, engine protection cover, NCB protection, etc. However, you must opt for comprehensive bike insurance to be able to choose add-ons.

Conclusion

If your two wheeler insurance policy has expired, you can still get it renewed. You can utilise the above-mentioned steps to complete the expired bike insurance renewal online or offline. However, if your policy has expired for more than 90 days, you will have to get a new bike insurance policy. A lapsed bike insurance policy can lead to a lot of financial perils. You can avoid these perils by following some of the methods mentioned above.

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

Steps To Renew An Expired Bike Insurance Policy Fast

Can You Pause Bike Insurance in India? Know the Truth

What to do if your bike insurance policy expires?

Bike Insurance Without Inspection: Quick Guide

Role of grace period in insurance policy renewal